How NEOM Green Hydrogen Company is championing Saudi Arabia’s clean energy transition

Hydrogen production from renewable energy sources. (Shutterstock)
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Updated 01 October 2024
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How NEOM Green Hydrogen Company is championing Saudi Arabia’s clean energy transition

  • NEOM is leading Saudi Arabia’s mission to become a top manufacturer and exporter of clean energy
  • The project aligns with Saudi Vision 2030, diversifying the Kingdom’s economy while cutting carbon emissions

RIYADH: As global efforts to combat climate change intensify, Saudi Arabia is making bold strides in green hydrogen production, positioning itself as a world leader in the manufacture and export of sustainable energy.

At the heart of this transformation is the NEOM Green Hydrogen Company, a key component of Vision 2030, the Kingdom’s blueprint for diversifying its economy away from oil and achieving sustainability.

Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable energy sources like wind and solar power, has emerged as a critical solution in the fight against climate change.

Unlike gray or blue hydrogen, which are produced from natural gas and emit carbon dioxide or require carbon capture technologies, green hydrogen offers a zero-emissions alternative that can be used across various sectors, from transportation to manufacturing and energy storage.

As part of Saudi Arabia’s long-term energy strategy, NGHC is harnessing the country’s abundant wind and sunshine to produce green hydrogen on a massive scale.

The initiative will not only help Saudi Arabia reduce its domestic carbon footprint but also position the Kingdom as a major global supplier of green hydrogen, helping other countries reduce their emissions.




To ensure that its green hydrogen plant is carbon-free, NGHC produces hydrogen only from solar and wind, said CEO Wesam Al-Ghamdi. (Shutterstock photo)

In an exclusive interview with Arab News, Wesam Al-Ghamdi, CEO of NGHC, described how NGHC’s and the project’s focus on green hydrogen is aligned with the broader objectives of Vision 2030.

“We are proud to say that our vision is driven by Vision 2030,” he said. “Our product, our green ammonia, will be saving the world 5 million tonnes of carbon emissions.”

NGHC is set to be a cornerstone in Saudi Arabia’s green energy ambitions, producing up to 600 tonnes of green hydrogen daily using renewable energy from the vast solar and wind farms situated in NEOM — a futuristic city being built in northwest Saudi Arabia. 




Wesam Al-Ghamdi, CEO of NEOM Green Hydrogen Company. (Supplied)

Indeed, NEOM’s geographic position, with optimal sunlight and wind conditions, makes it an ideal hub for green hydrogen production.

At the core of NGHC is its cutting-edge technology. 

According to Al-Ghamdi, this will enable us to scale production at the plant to effectively support global decarbonization efforts, even within traditionally hard-to-abate sectors.




Late last year, NEOM started receiving wind turbines to power its green hydrogen plant in Oxagon, a floating industrial city under development on the coast of the Red Sea. (NEOM photo)

Additionally, ENOWA’s Hydrogen Innovation and Development Center (HIDC), located at Oxagon features a project by NGHC and will focus on R&D, training and development and will ensure the Kingdom stays ahead of evolving green energy technologies.

Al-Ghamdi stressed the entire development was designed with environmental considerations in mind. “Since we started the development and the design phase, we have been building the plant to be environmentally friendly,” he said.

While some critics argue that large-scale hydrogen production could inadvertently create environmental challenges, NGHC’s leadership emphasizes the sustainable nature of the operation

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The company aims to produce hydrogen entirely through renewable energy sources, ensuring minimal environmental disruption.

“We are building the plant to be carbon-free. We are only producing hydrogen from solar and wind,” said Al-Ghamdi.

He further highlighted that environmental policies and procedures would remain central to the project as it evolved.




NEOM Green Hydrogen Company leaders on field visit. (Supplied)

“For the future, the keyword is reinforcement,” he said. “We build our policy, procedures and framework around starting the operations and continuing the operations to be environmentally friendly.”

NGHC’s ambitions extend far beyond the borders of Saudi Arabia. The project aims to position the Kingdom as a global leader in hydrogen production, while also creating thousands of new jobs and stimulating local economies.

These efforts reflect a broader global shift toward sustainable energy, offering a glimpse into the future of the hydrogen economy.

DID YOUKNOW?

• Green hydrogen releases zero carbon dioxide and its only byproduct is water, making it the cleanest hydrogen fuel.

• By 2030, half of Saudi Arabia’s power will come from renewable sources, including green hydrogen.

• Saudi Arabia plans to invest more than $200 billion in renewable energy by 2030, boosting green hydrogen initiatives.

International collaboration is seen as a key factor in the project’s success. By working closely with leading global industry partners, ACWA Power, Air Products, and NEOM, NGHC is ensuring it remains at the forefront of green hydrogen production.

Such partnerships are crucial for knowledge-sharing and innovation in the hydrogen sector. 

“ACWA Power and their experience, deep knowledge, and renewable power continues to be a source for us,” said Al-Ghamdi.




NEOM Green Hydrogen Company recently partnered with the Energy & Water Academy to train Saudi Arabia’s future green energy workforce. (NEOM photo)

For Saudi Arabia, green hydrogen is more than just a tool for reducing emissions — it is a critical element of its Vision 2030 strategy to diversify the economy and reduce its dependence on fossil fuels.

“Saudi Arabia especially, the major countries of the G20, the decarbonizing and net-zero targets, are telling us that there is nowhere to go but to decarbonize,” said Al-Ghamdi.

“No one doubts that hydrogen is the fuel of the future.”
 

 


Saudi Arabia’s NEOM gigaproject a ‘generational investment,’ minister says

Updated 57 min 57 sec ago
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Saudi Arabia’s NEOM gigaproject a ‘generational investment,’ minister says

  • The world’s top oil exporter has poured hundreds of billions of dollars into development projects through the kingdom’s $925 billion sovereign fund

RIYADH: Saudi Arabia’s NEOM gigaproject, a futuristic region being built in the desert, is a “generational investment” with a long timeline, the country’s investment minister told Reuters on Monday, adding that foreign investment will pick up pace.
“NEOM was not meant to be a two-year investable opportunity. If anybody expected NEOM to be foreign investment in two, three or five years, then they have gotten (it) wrong — it’s a generational investment,” Minister Khalid Al-Falih said on the sidelines of the World Investment Conference in Riyadh.
“The flywheel is starting and it will gain speed as we go forward, as some of the foundational assets come to the market,” he said.
The world’s top oil exporter has poured hundreds of billions of dollars into development projects through the kingdom’s $925 billion sovereign fund, the Public Investment Fund (PIF), as it undergoes an economic agenda dubbed Vision 2030 to cut dependence on fossil fuels.
NEOM, a Red Sea urban and industrial development nearly the size of Belgium that is meant to eventually house 9 million people, is central to Vision 2030. Saudi Arabia has scaled back some lofty ambitions to prioritize completing elements essential to hosting global sporting events over the next decade as rising costs weigh, sources told Reuters earlier this month. NEOM announced this month its long-time chief executive, Nadhmi Al-Nasr, had stepped down, without giving further details.
Asked what effect the departure would have on investors, the minister said the executive had done “a respectable job” but that “there is a time for everybody to pass on the baton.”
Asked if PIF will continue to do much of the spending on NEOM until more foreign funds come in, Al-Falih said it was not binary.
“I think foreign investors are starting to come to NEOM, they’re starting to channel capital. Some of the projects that the PIF will be doing will be financed through global capital pools, through some alternative and private capital. That’s taking place as we speak,” he said.
“So I urge you not to look at NEOM as being 100 percent PIF and then suddenly there will be a cliff and it will go private.”
Saudi Arabia, which is racing to attract $100 billion in annual foreign direct investment by the turn of the decade — reaching about a quarter of that in 2023 — has recently seen more co-investment deals between state entities and foreign investors.
“It’s always been the intent,” Al-Falih said of foreign inflows alongside state funds.
He noted that foreign investors were at times “still looking, still examining, still sometimes questioning,” but that now there was confidence in the profitability of investment opportunities and that “the risk-return trade-offs are very, very fair and positive to them.”


Saudi crown prince extends condolences to Kuwaiti counterpart on death of Sheikh Mohammed Abdulaziz Al-Jarrah Al-Sabah

Updated 26 November 2024
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Saudi crown prince extends condolences to Kuwaiti counterpart on death of Sheikh Mohammed Abdulaziz Al-Jarrah Al-Sabah

RIYADH: Saudi Crown Prince Mohammed bin Salman sent a cable of condolences to Kuwaiti Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah on the passing of Sheikh Mohammed Abdulaziz Hamoud Al-Jarrah Al-Sabah.
In the cable, the crown prince extended his deepest sympathy to Sheikh Sabah and the family of the deceased.


Saudi tech diplomat meets Iraqi PM to discuss digital cooperation

Updated 25 November 2024
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Saudi tech diplomat meets Iraqi PM to discuss digital cooperation

  • Deemah Al-Yahya, head of the multilateral Digital Cooperation Organization, commended Iraq’s investment in human capital as driver for growth and expansion of digital economy
  • Iraq has been working in recent years to develop a strategy for digital transformation to help support the private and public sectors and grow the economy

RIYADH: Saudi senior tech diplomat Deemah AlYahya, the secretary-general of the multilateral Digital Cooperation Organization, held talks on Monday with Iraq’s prime minister, Mohammed Shia Al-Sudani, about support for Baghdad’s plans to develop its digital business and artificial intelligence sectors.

They discussed Iraq’s strategy for digital transformation, and the need to create and develop a workforce with the tech skills required to help grow the Iraqi economy effectively, the Saudi Press Agency reported.

Though Iraq is not a member of the DCO, an international body that focuses on the digital economy, Al-Sudani said his country is keen to work with the organization to meet the nation’s needs for a skilled workforce in the business sector.

AlYahya commended Iraq for the progress it has already made in terms of investment in the human capital needed to develop the digital skills that are essential to drive growth in a digitized economy.

Iraq has been working in recent years to develop a strategy for digital transformation to help support the private and public sectors and grow the economy. Authorities this month organized the first Digital Space Iraq Forum, which focused on the use of advanced technologies, including AI, to help build a comprehensive digital economy.

The DCO says that since it was founded in November 2020, it has been at the forefront of efforts to curate policies and initiatives to support the digital economy in several countries. Currently, 16 nations are members, including Saudi Arabia, Jordan, Pakistan, Bahrain, Bangladesh and Oman. It also has 39 observer partner organizations.

DCO member states have a collective gross domestic product of $3.5 trillion and serve a combined market of nearly 800 million people, more than 70 percent of whom are under the age of 35.


Saudi FM pushes for regional stability at G7-Arab foreign ministers meeting

Updated 25 November 2024
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Saudi FM pushes for regional stability at G7-Arab foreign ministers meeting

  • In his address, Prince Faisal highlighted the ongoing crises in Gaza and Lebanon

RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan took part in an expanded session of the second meeting between G7 foreign ministers and their counterparts from Arab nations on Monday, the Saudi Press Agency reported.

The meeting was hosted in Italy under the theme “Together for the Stability of the Middle East.”

The session, which addressed pressing regional and international challenges, was held with the participation of Saudi, Jordanian, Emirati, Qatari and Egyptian officials, as well as the secretary-general of the Arab League.

In his address, Prince Faisal emphasized the importance of strengthening partnerships to address these challenges effectively.

He highlighted the ongoing crises in Gaza and Lebanon, urging the international community to act immediately to secure a ceasefire, facilitate unrestricted humanitarian aid, and progress toward establishing an independent Palestinian state.

He also called for respect for Lebanon’s sovereignty, and renewed international efforts to resolve the crisis in Sudan and alleviate the resulting human suffering.

The meeting was also attended by Prince Faisal bin Sattam bin Abdul Aziz, Saudi ambassador to Italy, the SPA reported.


Scientists awarded for sustainable water innovation at Saudi conference

Updated 25 November 2024
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Scientists awarded for sustainable water innovation at Saudi conference

  • Research aims to improve desalination efficiency
  • Makkah’s deputy emir in attendance

JEDDAH: Scientists were awarded prizes for their work in researching desalination and wastewater treatment technologies during an event in Jeddah on Monday.

The third edition of the Innovation-Driven Water Sustainability Conference was attended by 480 experts, scientists, researchers, specialists and 40 leading organizations in the water sector, from 20 countries.

The grand prize — the Global Prize for Innovation in Desalination 2024 — went to Lee Nuang Sim from Singapore’s Nanyang Technological University for his project “uncovering the power of centrifugal reverse osmosis,” and Sue Mecham, CEO of NALA Membranes, for her project “chlorine stable new membranes for sustainable desalination and wastewater treatment/reuse.”

Visitors attend the third Innovation-Driven Water Sustainability Conference in Jeddah on Nov. 25, 2024. (Supplied)

Mecham, from North Carolina, US, spoke to Arab News after receiving her award, saying: “We are honored to be selected for the Global Prize for Innovation in Desalination 2024. Our mission is to bring new membranes to market and reduce the cost and complexity of water purification.”

Meanwhile, Saudi Ghadeer Al-Balawi from the University of Tabuk was another one of this year’s prizewinners with her project “novel heterogeneous catalysts for improving wastewater treatment plants in Saudi Arabia.”

Al-Balawi told Arab News: “I am incredibly honored to be one of the recipients of the Global Prize for Innovation in Desalination 2024. This recognition means so much to me. This project has been conducted at the University of Sheffield with hard work and dedication with the assistance of my supervisor, Dr. Marco Conte.”

The event’s opening ceremony was attended by Makkah Deputy Emir Prince Saud bin Mishal and Minister of Environment, Water and Agriculture Abdulrahman Abdulmohsen Al-Fadley, as well as other senior officials.

Following the opening, Abdullah Al-Abdulkarim, chairman of the Saudi Water Authority, said that the event reflects the Kingdom’s commitment to promoting scientific and research innovation as a pillar for achieving water sustainability and security.

Through the conference, the SWA aims to share the impact of innovation in promoting the sustainable supply of water, according to SWA spokesperson Sultan Al-Rajhi.

“This conference discusses the latest global practices and innovative solutions in the water industry, with the participation of experts, scientists and specialists, who emphasize the pivotal role of innovation in accelerating the future prosperity of water and achieving the Sustainable Development Goals for water and the environment,” he said.

The two-day conference will continue to feature discussions on more than 180 research papers, as well as a water hackathon organized by the Saudi Water Innovation Center.