© Air Products
The NEOM Green Hydrogen Company (NGHC) has achieved 80% construction completion on what is set to be the world’s largest green hydrogen and ammonia production complex. The site, located in Oxagon, Saudi Arabia, covers over 300 square kilometers and is being developed by NGHC — a joint venture between ACWA Power, Air Products, and NEOM.
The facility will run entirely on 4GW of dedicated renewable energy from on-site wind and solar farms. Milestone equipment now in place includes hydrogen storage vessels, wind turbines, electrolysers, and pipe racks. First production of green ammonia is expected in 2027.
Project Backed by $8.6 Billion in Funding
Air Products, the exclusive off-taker and primary EPC contractor, committed to purchasing 100% of the output under a long-term agreement. This offtake deal was key to unlocking $8.6 billion in public and private sector funding.
The project’s core output — 600 tonnes per day of carbon-free hydrogen — will be converted into green ammonia to reduce shipping costs and facilitate export to global markets.
Renewable Power Build-Out On Track
The project includes 2.2GW of solar and 1.6GW of wind capacity, with full completion scheduled for mid-2026. These sources will feed into the facility’s 2.2GW of electrolysers. An air separation unit, ammonia storage tanks, and a dedicated jetty for export are also part of the infrastructure.
The system uses proven technologies, but on a scale that has not been done before. NGHC says the integrated approach at this size is one of the project’s main technical differentiators.
Air Products Shifts Away from Ammonia Marketing
Despite being the sole offtaker, Air Products has made it clear it does not plan to market the ammonia itself. Instead, it will sell on a free-on-board (FOB) basis and rely on partners for distribution.
“We don’t intend to be long-term marketers of ammonia,” CEO Eduardo Menezes said during the Q1 2025 earnings call. He added that the company is working to identify long-term buyers and expects to share updates by the end of the year.
European Market Plans on Hold
Initial plans focused on selling green ammonia into Europe, particularly for reconversion to hydrogen in the transport sector. However, declining interest in hydrogen for mobility and regulatory uncertainty have forced Air Products to delay investments in European downstream infrastructure.
Although a cracker has been approved in the UK, no clear offtake contracts or timelines have been announced.
Cost Outlook More Positive Than Expected
Despite early doubts, Menezes says the economics of the NEOM project are stronger than anticipated. “I was positively surprised with the numbers,” he said, noting that ownership of power generation assets helps maintain predictable costs.
He emphasized that pricing will remain stable over the life of the project, with only minor adjustments for operations and maintenance.
Next Steps: Securing Buyers by Late 2025
With physical construction advancing, attention now turns to commercial execution. Production is slated for 2027, but NGHC and Air Products still need to finalize sales agreements.
The success of this high-profile project will depend not just on engineering, but on its ability to move green ammonia into global supply chains at competitive prices.
