NEOM Green Hydrogen Plant Backed by Saudi Funds

Saudi Arabia's development finance institutions are emerging as a key engine behind one of the world's largest green-hydrogen ventures, the NEOM Green Hydrogen Project, located in the Oxagon industrial city. The plant is a joint venture between NEOM Green Hydrogen Company, ACWA Power, Air Products, and NEOM, with total investment exceeding SAR31 billion.

The project has drawn support from a broad group of financiers, including the National Development Fund, the National Infrastructure Fund, the Saudi Industrial Development Fund, local and international banks, and other financial institutions. Long-term financing included roughly SAR22.9 billion in debt, structured over a tenor of about 34 years. PIF separately reported a SAR3.2 billion contribution to construction under its green-finance framework.

Once operational, the plant is designed to produce up to 600 tonnes of green hydrogen, powered by approximately 4 GW of renewable capacity from integrated wind and solar generation. The hydrogen will be converted into about 1.2 million tonnes of green ammonia annually, intended for export. Air Products holds a 30-year offtake agreement for the plant's green ammonia output.

Commercial operations are targeted for 2027, with earlier project documents pointing to commissioning by the end of 2026.

For residents and the wider business community, the project signals the practical scale of the Kingdom's clean-energy ambitions. The involvement of national funds alongside global partners underlines how domestic financing is being used to build industrial capacity, support export revenues, and advance the country's long-term economic diversification goals.

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