Saudi Arabia: Saudi Arabia is positioning itself as a major exporter of green hydrogen as the world seeks cleaner fuels for heavy industry, shipping, and power generation.

At the heart of this effort is the Neom Green Hydrogen Co., a joint venture building what is expected to become one of the world’s largest green hydrogen production facilities in Neom, along the Kingdom’s Red Sea coast.

The project will harness renewable energy from solar and wind farms to produce hydrogen via electrolysis, which will then be converted into green ammonia for export to global markets.

Wesam Al-Ghamdi, CEO of Neom Green Hydrogen Co., explained that the project is designed around long-term export agreements to help develop a global hydrogen market.

“NGHC’s green hydrogen output is fully committed under an exclusive 30-year offtake agreement with Air Products, which will take 100 percent of the production and export it to global markets in the form of green ammonia.”

This arrangement ensures that all hydrogen produced will be sold through long-term contracts rather than short-term spot markets.

“Air Products manages the downstream marketing and global distribution, providing long-term commercial certainty across the value chain.”

Hydrogen is increasingly recognized as a critical element of the global energy transition because it can reduce emissions in sectors that are hard to electrify. These include steel production, chemicals, fertilizer manufacturing, maritime shipping, and certain forms of power generation.

Al-Ghamdi noted that the fastest-growing hydrogen markets are those with established climate policies and infrastructure capable of supporting imports.

“From an export perspective, markets that are progressing fastest tend to be those with clear decarbonization policies, advanced port and shipping infrastructure, and near-term demand in hard-to-abate sectors such as heavy industry, chemicals, fertilizer, power generation, and maritime transport.”

He added that NGHC’s role is to provide reliable, large-scale supply to support the growth of these emerging markets.

“NGHC’s role in this ecosystem is to deliver large-scale, reliable supply that can support these emerging markets as they mature,” Al-Ghamdi said.

Transporting hydrogen over long distances presents major technical challenges due to its low density and storage difficulties. The Neom project addresses this by converting hydrogen into ammonia before international shipping.

“Our project is designed to transport green hydrogen in the form of green ammonia, which is a highly dense, carbon-free hydrogen carrier that is easier to transport and store than hydrogen,” the top executive said.

“This choice reflects both technical and logistical considerations at scale, particularly for long-distance maritime transport.”

Ammonia can be shipped using established global practices, making it one of the most practical current solutions for hydrogen exports.

“Ammonia allows hydrogen to be shipped using established global shipping practices, which is critical for enabling early international trade,” Al-Ghamdi said.

The Neom facility will also include specialized infrastructure to handle ammonia exports.

“The project also includes dedicated infrastructure, including an export jetty, specifically designed for ammonia handling and shipping.”

Once fully operational, the facility is expected to be one of the largest green hydrogen plants in the world.

“At full operations, NGHC will produce up to 600 tonnes per day of carbon-free hydrogen, exported as up to 1.2 million tonnes of green ammonia annually,” Al-Ghamdi said.

Global demand forecasts suggest hydrogen could become a major traded energy commodity in the coming decades. Analysts caution, however, that many projects may stall without committed buyers.

“The project is anchored in long-term contractual arrangements rather than spot market exposure. This long-term offtake structure underpins the project’s bankability, supports investment at scale, and reflects the importance of stability in scaling first-of-a-kind hydrogen infrastructure,” Al-Ghamdi said.

The plant will be powered by a large-scale renewable energy system combining solar and wind power.

“The project’s 4 GW solar and wind power generation sites are expected to be completed by mid-2026, followed by commissioning of the electrolyzers, with expected product availability in 2027.”

These milestones will allow time for workforce training, operational testing, and system validation before full-scale production begins.

Saudi Arabia is considered an ideal location for large-scale hydrogen production due to its natural resources and strategic position.

“Saudi Arabia’s emergence as a global hydrogen exporter is firmly anchored in Vision 2030, which sets out a clear national pathway toward economic diversification, clean energy leadership, and achieving net zero by 2060,” Al-Ghamdi said.

The Kingdom benefits from abundant solar and wind resources, enabling cost-effective renewable energy generation.

“The Kingdom is uniquely positioned due to its abundant natural resources, particularly world-class solar irradiation and strong wind profiles, which enable large-scale renewable energy generation at competitive scale,” Al-Ghamdi added.

The project’s Neom location also offers direct access to major shipping routes.

“At the crossroads of global trade, our project’s location at Neom and by the Red Sea provides unparalleled strategic advantages connecting our plant directly to major shipping routes across the Middle East, Africa, Europe, and Asia.”

Despite growing momentum, the hydrogen industry faces challenges, including building supply chains, infrastructure, and a skilled workforce.

“As a nascent industry, and like any emerging sector, green hydrogen will face both challenges and opportunities as it transitions from early ambition to large-scale industrial deployment.”

“Scaling hydrogen as a traded commodity requires alignment across the full value chain, from renewable power generation and electrolysis to conversion, shipping, and long-term offtake.”

NGHC is also supporting initiatives to train the workforce necessary for operating hydrogen facilities.

“Through initiatives such as the Kingdom’s first specialized vocational training program in renewable energy and green hydrogen, and academic partnerships in the Tabuk region, NGHC is helping address critical barriers to scale: the skilled workforce and operational excellence required to sustain global hydrogen trade.”

If successful, the project could demonstrate the potential of hydrogen production and export at industrial scale while contributing to global emissions reductions.