Construction of Neom green hydrogen plant is 60% complete

Construction work on the 2.2-GW Neom green hydrogen plant in northwestern Saudi Arabia is 60% complete and the facility is on track to go onstream at the end of 2026 as planned, co-shareholder Air Products (NYSE:APD) said on Thursday.

The US industrial gases company, which is the sole off-taker of the ammonia from the plant under an exclusive 30-year supply agreement, has already secured a take-or-pay commitment with off-takers for about 35% of the output.

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In addition, talks are underway with more off-takers for volumes which would exceed the capacity of the facility, Air Products said in a presentation following the publication of its fourth-quarter financial results.

Powered by more than 4 GW of solar and wind, the site is expected to produce about 600 tonnes of green hydrogen per day, corresponding to 1.2 million tonnes of green ammonia annually with first deliveries planned for early 2027.

The USD-8.4-billion (EUR 7.79bn) project, in which Air Products holds one-third of the equity, is massively backed by the Saudi state through the other two shareholders -- Neom and Riyadh-based developer ACWA Power which own the remaining two-thirds.