Saudi investments to produce green hydrogen... Huge projects

Saudi Arabia has drawn up plans for mega projects that will be implemented until 2030, in addition to having a strategic location for renewable energy sources, enabling it to expand hydrogen production.

Investing in green hydrogen in Saudi Arabia

As part of the clean energy expansion plans, the Saudi Green Hydrogen NEOM Company signed financial documents with 23 local, regional and international banks and investment companies to establish a green hydrogen production plant with a total investment of $8.4 billion.

With this, NEOM Green Hydrogen is completing the financial closing stage of the project to establish the largest green hydrogen production plant in the world, which is being built in the city of Oxagon, within the NEOM region in the Kingdom of Saudi Arabia.

The largest floating industrial complex in the world

The largest green hydrogen production plant in the world is located in the city of Oxagon in the NEOM region of Saudi Arabia, with a total area of approximately 300 square kilometers.

The Kingdom describes the city of Oxagon as the largest floating industrial complex in the world, and a center for clean and advanced industries.

The total investment value of the green hydrogen plant is about $8.4 billion, and the value of the engineering, procurement and construction contract agreements with the US company Air Products is estimated at $6.7 billion.

It is intended to produce about 4 gigawatts of solar and wind energy, to run the electrolysis of the plant to produce 1.2 million metric tons of green ammonia annually, which is equivalent to 600 metric tons of green hydrogen per day.

A $6.5 billion Korean-Saudi project to produce hydrogen

On November 7, 2022, Korea Electric Power Corporation-Kepco and other companies signed a memorandum of understanding with the Saudi Public Investment Fund to build and operate a green hydrogen and ammonia production plant in Saudi Arabia, according to Reuters.

The factory project, which is being built on an area of 396,000 square meters in Yanbu, Saudi Arabia, is intended to be built between 2025 and 2029 and will be in operation for 20 years. It is expected to produce 1.2 million tons of green hydrogen and ammonia annually, with a value of $6.5 billion.

Japan wants to invest in hydrogen with Saudi Arabia

On March 2, 2023, the Japanese company Marubeni announced the launch of a feasibility study for producing clean hydrogen in Saudi Arabia for the local and international markets, under an agreement with the Saudi Public Investment Fund.

The Japanese company signed a memorandum of understanding with the Public Investment Fund to set a framework for developing a clean hydrogen project in the Kingdom, according to a statement at the time.