Green hydrogen, a type of hydrogen gas that is produced using renewable energy sources, unlike ‘grey’ or ‘blue hydrogen, is considered environmentally friendly and sustainable because it generates zero greenhouse gas emissions during its production, and NEOM Green Hydrogen Company (NGHC) is leading the world in its transition to carbon-free fuel by building the world’s largest green hydrogen plant.
Given its strategic location at Oxagon in NEOM, NGHC’s plant will benefit from reliable, sustainable sources of renewable energy from onshore wind and solar. Its proximity to the sea and its dedicated jetty facilitate global exports, sitting at the crossroads of major shipping routes.
NGHC, an equal joint venture between ACWA Power, Air Products, and NEOM, will be the first company to produce green hydrogen at scale once fully operational in 2026, producing up to 600 tonnes of green hydrogen per day. NGHC has already locked in a 30-year off-take agreement with Air Products to take 100% of the green hydrogen, transported in the form of green ammonia, a highly dense material ideal for shipping. Air Products already has agreements in place for hydrogen import terminals at Hamburg (Germany), Rotterdam (Netherlands), and Immingham (UK).
The NGHC facility consists of three sites:
- A green hydrogen plant, located at Oxagon
- A solar farm with over five million panels and generating up to 2.2GW is located near Shigri
- A wind garden with 240 wind turbines generating up to 1.6GW is located near Aqaba
In addition, NGCH has a project at the Hydrogen Innovation and Development Center (HIDC), which features a 20MW electrolyzer with the ability to produce up to eight tonnes per day of green hydrogen for the local hydrogen mobility market.
A Breath of Fresh Air for the Planet
Green hydrogen is one of the most promising solutions in our fight against climate change. Some studies have suggested it could contribute 10% of the world’s climate mitigation to achieve 1.5 degrees and 12% of final energy demand in a net zero carbon economy. It could help end the world’s dependence on fossil fuels and aid the world’s transition to net-zero emissions.
Once fully operational in 2026, it will produce up to 600 tonnes of green hydrogen per day
Green hydrogen is produced through a process called electrolysis, where an electric current is passed through water (H2O), splitting it into its two constituent elements: hydrogen (H2) and oxygen (O2). When the hydrogen undergoes combustion, it produces nothing but water vapor, so it’s also carbon-free in its end use.
The critical factor that distinguishes green hydrogen from other types of hydrogen is the source of energy used for electrolysis. It relies on renewable energy, making it a sustainable and clean energy carrier. Consequently, if the 600 tonnes per day produced by NGHC is used in the heavy-duty truck market, it will save the world up to five million metric tonnes of carbon dioxide (CO2) per year, compared to diesel trucks or buses. Over a period of 30 years, NGHC’s mega-plant project is expected to eliminate more than 166 million tonnes of CO2, equivalent to the emissions from almost 15 billion gallons or 56 billion liters of diesel used in heavy-duty trucks.
Green hydrogen relies on renewable energy, making it a sustainable and clean energy carrier
Powering Progress with Green Hydrogen
Under its Vision 2030, Saudi Arabia aims to be the world’s largest hydrogen producer and exporter, producing up to four million tonnes of clean hydrogen per year, and NGHC is helping to make this a reality.
Moreover, Saudization is playing a central role in the project’s long-term vision, ensuring that people from the Kingdom will be involved at every level. Through the education, training, and upskilling opportunities provided by NGHC, the company is building a highly skilled team to deliver its vision of a carbon-free future for the benefit of the planet.
Green hydrogen’s environmental benefits are clear. By replacing carbon-intensive fuels in various sectors, it has the potential to drastically reduce greenhouse gas emissions, mitigate climate change, and improve air quality. It offers a path to decarbonize industries that have proven stubbornly resistant to change, such as steel production and heavy transportation.
Beyond its environmental benefits, green hydrogen presents significant economic opportunities. Investing in the production, transportation, and storage of green hydrogen can create jobs, stimulate local economies, and foster innovation in the energy sector. It can also reduce dependence on energy imports and enhance energy security.
In conclusion, green hydrogen stands as a powerful force for change, offering a cleaner, more sustainable future for our planet. With the ability to reduce emissions, provide energy storage solutions, revolutionize transportation, and stimulate economic growth, green hydrogen is a vital part of the global transition to a low-carbon, eco-friendly world.
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