Latest Updates: NEOM Green Hydrogen Project Hits 80% Completion (June–July 2025)
As of Q2 2025, the NEOM Green Hydrogen Project has reached a significant milestone—80% construction completion across its core components, including:
- The green hydrogen production plant
- A massive on-site wind farm
- A high-capacity solar array
- An integrated transmission and storage grid
Located in Oxagon, the industrial city within NEOM, this clean energy megaproject is progressing steadily, marking a major step in Saudi Arabia’s Vision 2030 agenda.
Current installation works are focused on critical infrastructure such as:
- Wind turbines
- Electrolysers (for splitting water into hydrogen and oxygen)
- Hydrogen storage tanks
- Cold box units for ammonia liquefaction
- Pipe racks for interconnection across the facility
The project remains on schedule to complete its 4 GW renewable power infrastructure by mid-2026. Commissioning of electrolysers and the first production of green ammonia is expected to begin in 2027.
However, while construction progress is promising, there’s a notable commercial challenge:
So far, TotalEnergies is the only confirmed international offtaker, committed to purchasing roughly one-third of the planned hydrogen output. As of May 2025, no additional long-term purchase agreements have been signed with other global buyers. This has led NGHC to consider scaling the project in phases or shifting focus to domestic offtakers to manage risks.
In a parallel development, NGHC has launched its second major recruitment drive (April 2025), including a virtual career fair aimed at hiring top engineering, operations, and clean energy talent—both from within Saudi Arabia and internationally.
What Is the NEOM Green Hydrogen Project?
The NEOM Green Hydrogen Project is a groundbreaking clean energy initiative located in Oxagon, the advanced industrial hub within Saudi Arabia’s ambitious NEOM megacity. It aims to become the world’s largest green hydrogen and ammonia production facility, powered entirely by renewable energy—no fossil fuels involved.
Spearheaded by a joint venture called NEOM Green Hydrogen Company (NGHC)—a Joint venture between NEOM (Saudi Arabia), ACWA Power, and Air Products—the project is central to Saudi Arabia’s Vision 2030 strategy and the Saudi Green Initiative.
How NEOM Will Produce Green Hydrogen and Ammonia
- Planned Output: Up to 600 tonnes of green hydrogen per day
- Converted into: ~1.2 million tonnes of green ammonia annually
- Carbon Benefit: Could eliminate ~5 million tonnes of CO₂ emissions each year
- Estimated Investment: Around USD 8.4 billion
At the heart of the operation are electrolysers, which use electricity from solar and wind power to split water into hydrogen and oxygen. This green hydrogen is then combined with nitrogen to produce ammonia—a stable and exportable clean fuel.
Construction Progress as of July 2025 – 80% Complete
By Q2 of 2025, the NEOM Green Hydrogen Project has reached an impressive 80% construction milestone, with steady progress on all major fronts:
As of Q2 2025, here’s a Quick snapshot of what’s been achieved on the ground at Oxagon:
- Solar and Wind Farms: Installation of 4 GW of combined capacity in progress
- Electrolysers: Being installed to convert water into hydrogen
- Hydrogen Storage Tanks & Cold Boxes: Currently under active setup
- Pipe Racks and Transmission Infrastructure: Nearing mechanical completion
The entire facility is centralized at Oxagon, where renewable power, hydrogen production, storage, and ammonia synthesis are integrated in a single, large-scale complex—something no other project has achieved at this magnitude.
Project Timeline – Key Milestones Ahead
The NEOM Green Hydrogen Project is progressing on a carefully structured schedule, with key deliverables mapped through to 2027 and beyond. Here’s a look at the major construction and commissioning milestones:
| Milestone | Expected Completion |
|---|---|
| 80% Overall Completion | July 2025 (Achieved) |
| Solar & Wind Farms Fully Operational | Mid–2026 |
| Electrolyser Commissioning | Late 2026 – Early 2027 |
| First Green Ammonia Shipment | Estimated 2027 |
Timeline Insights & Outlook
The commissioning of electrolysers, a crucial step in green hydrogen production, is scheduled for late 2026. These units will enable the NEOM facility to start generating renewable hydrogen at industrial scale using 100% clean power.
Following successful commissioning, the project is expected to begin its first green ammonia exports from Oxagon in early-to-mid 2027, aligning with international interest in clean ammonia as a transportable energy carrier.
However, if offtake agreements and export logistics face delays, some analysts warn that full-scale hydrogen export from NEOM may slip to 2028 or later.
Strategic Importance – A Saudi Vision 2030 Pillar
This flagship green hydrogen initiative in Saudi Arabia reinforces the Kingdom’s global leadership in sustainable infrastructure and renewable energy exports.
- Saudi Arabia’s Role as a Clean Energy Exporter: This project may shift Saudi’s global image from oil supplier to green hydrogen leader.
- Job Creation: NGHC held its second major recruitment campaign in April 2025, targeting both local and international engineering talent.
- Sustainable Infrastructure Leadership: NEOM is positioning itself as the world’s first fully sustainable megacity.
Buyer Challenges – The Biggest Commercial Risk
Despite technical success, the project faces an uphill task on the commercial front. As of mid-2025:
- Currently, TotalEnergies is the only buyer with a long-term offtake agreement in place, covering approximately one-third of output.
- No other global off takers have signed deals.
- The lack of buyer confidence could delay or scale down the project unless more buyers step in.
In response, NGHC may implement a phased commissioning strategy—building output based on confirmed demand to avoid overproduction.
Risks & Roadblocks Ahead
- Offtake Uncertainty: The absence of long-term agreements beyond TotalEnergies may affect financial sustainability.
- Export Infrastructure Gaps: Global logistics and regulations for ammonia handling are still under development.
- Timeline Pressures: Initial shipments may face delays to 2028 depending on how quickly new buyers are secured.
Long-Term Potential – If Fully Realized
If the NEOM Green Hydrogen Project operates at full scale, it will:
- Be the largest operational green hydrogen facility globally by 2030
- Produce clean fuel at gigawatt scale, helping decarbonize hard-to-abate sectors like shipping, steel, and chemicals
- Set a global benchmark for clean industrial development, integrated entirely within a net-zero ecosystem (Oxagon)
Key Takeaways
- Location: Oxagon, NEOM, Tabuk Province, Saudi Arabia
- Project Owners: NGHC (NEOM + ACWA Power + Air Products)
- Status (July 2025): 80% construction completed
- Output Goal: 600 tonnes/day green hydrogen = 1.2 million tonnes/year green ammonia
- Power Source: 4 GW solar + wind
- Start of Exports: Expected 2027 (may extend to 2028)
