Saudi Arabia is pushing forward to become a global leader in both producing and using hydrogen as a clean energy source. By 2026, it plans to finish building the world’s biggest green hydrogen plant in the NEOM region.
This move underscores the Kingdom’s commitment to renewable energy and sustainability.
A recent book by the King Abdullah Petroleum Studies and Research Center (KAPSARC), titled “The Clean Hydrogen Economy and Saudi Arabia,” highlighted the Kingdom’s achievement of the lowest cost of electricity production from renewable sources.
The book aimed to explore the challenges facing Saudi Arabia in the clean hydrogen sector and discuss global efforts and solutions to address technological gaps.
The NEOM Green Hydrogen Company has made significant strides in constructing the world’s largest green hydrogen production facility in the NEOM region’s industrial city of “Oxagon.”
With an investment of $8.4 billion, this plant is set to provide clean energy on a large scale globally, marking a major milestone in sustainable energy production.
The book also mentioned that producing green hydrogen in NEOM is expected to cost less than two dollars per kilogram, one of the lowest rates worldwide.
As electricity and green tech costs drop, so will the cost of making green hydrogen, according to the book.
It emphasizes that Saudi Arabia not only has cheap fossil fuels but also sustainable energy sources, securing its position in future energy markets.
Saudi Arabia has one of the world’s cheapest renewable energy sources, which will help cut carbon removal costs across the country. NEOM can supply renewable energy for making low-carbon chemicals, steel, aluminum, fertilizers, and mining.
Hydrogen can stabilize the electricity system, store energy, and fuel land and maritime transport, as per the book.
With great renewable resources, abundant cheap land, and supportive laws, NEOM has what it takes to be a global leader in low-cost hydrogen production.
