NEOM Green Hydrogen Project Nears Completion

Saudi Arabia's green-hydrogen ambitions are moving closer to reality as the NEOM Green Hydrogen Project in Oxagon nears completion, with development finance playing a central role in driving the Kingdom's clean-energy expansion. The project, with a total investment of roughly SAR31.5 billion, is reported to be about 96% complete and is targeted to begin commercial operations in 2027.

The project is an equal joint venture between ACWA Power, Air Products, and NEOM. It integrates up to 4 GW of solar and wind power and is designed to produce up to 600 tonnes of green hydrogen, which will be converted into green ammonia for export.

Financing for the facility reflects a broad mix of national and international backers. The National Development Fund, the Saudi Industrial Development Fund, and the National Infrastructure Fund are all involved, alongside local and international financial institutions. The project reached financial close with approximately USD8.4 billion in total funding, including about USD6.1 billion in non-recourse project financing from 23 banks and institutions.

Why it matters

For residents and businesses across the Kingdom, large-scale projects like this signal a long-term shift toward clean energy and new industrial sectors. By turning abundant solar and wind resources into green ammonia for global export, the project supports economic diversification and positions Saudi Arabia as a key player in the emerging hydrogen economy.

The scale of participation from development funds and global financiers also highlights how coordinated financing is helping accelerate major industrial investments in the Kingdom, creating opportunities for jobs, supply chains, and local expertise as the project approaches its final stages.

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