ACWA’s $8.5 Billion NEOM Green Hydrogen Project Moves Into Commissioning

Saudi Arabia’s massive green hydrogen development at NEOM has reached a major milestone. ACWA has completed construction work on the $8.5 billion NEOM Green Hydrogen Project, moving the facility into the commissioning phase ahead of commercial operations planned for 2027.

Located at Oxagon in NEOM, the project is expected to become one of the largest green hydrogen production facilities in the world. It will use renewable electricity from solar and wind power to produce hydrogen at industrial scale, before converting much of it into green ammonia for export.

Construction Is Complete and Commissioning Has Started

Construction work on the NEOM Green Hydrogen Project has now been completed, according to ACWA. The project has entered the commissioning stage, where engineers will test and activate the different systems before full commercial production begins. This phase includes checking renewable power generation, transmission infrastructure, electrolysers, storage systems and ammonia production facilities.

Commercial operations are expected to begin in 2027. Reaching the commissioning phase is significant because many large green hydrogen projects around the world remain at the planning, financing or early construction stage. NEOM is now much closer to producing hydrogen at commercial scale.

The Plant Will Run on Around 4 GW of Renewable Energy

The NEOM Green Hydrogen Project will rely on approximately 4 GW of renewable electricity generated from solar and wind resources. This electricity will power electrolysers that split water into hydrogen and oxygen without relying on fossil-fuel-based electricity.

Using renewable power is central to the project’s environmental value. Traditional hydrogen production often depends on natural gas and produces significant carbon emissions. Green hydrogen aims to remove much of that carbon footprint by using electricity generated from renewable sources instead.

Production Could Reach 600 Tonnes of Green Hydrogen Per Day

Once operating at full capacity, the facility is expected to produce up to 600 tonnes of green hydrogen every day. That level of production puts NEOM among the largest green hydrogen projects currently being developed anywhere in the world.

The hydrogen will mainly be converted into green ammonia, which is easier to store and transport over long distances. Annual green ammonia output is expected to reach around 1.2 million tonnes, creating potential opportunities in international energy, shipping, chemicals and industrial markets.

The Project Could Cut Millions of Tonnes of Carbon Emissions

ACWA estimates that the NEOM Green Hydrogen Project could prevent around five million tonnes of carbon dioxide emissions each year once fully operational. The emissions reduction would come from replacing hydrogen and ammonia produced through more carbon-intensive conventional methods.

That could make the project particularly relevant for industries where decarbonisation remains difficult. Shipping, steel production, chemicals and heavy manufacturing are among the sectors exploring hydrogen and ammonia as potential alternatives to fossil fuels.

NEOM, ACWA and Air Products Are Developing the Facility Together

The project is being developed by NEOM Green Hydrogen Company, a joint venture involving ACWA, NEOM and Air Products. Each partner brings different capabilities to the project, including renewable energy development, industrial infrastructure and hydrogen production expertise.

The partnership has also attracted significant international financing. The project previously reached financial close with billions of dollars in funding from local, regional and international financial institutions, helping move the development from planning into large-scale construction.

Green Ammonia Could Become a New Saudi Export Market

The NEOM project also fits into Saudi Arabia’s broader effort to develop new clean-energy industries alongside its established oil and gas sector. Green hydrogen and green ammonia could eventually become important export products as governments and companies look for lower-carbon fuels.

Saudi Arabia has strong solar resources, large areas of available land and growing renewable power capacity. Those advantages could help the country produce hydrogen at scale and potentially supply markets in Europe, Asia and other regions where demand for low-carbon fuels is expected to grow.

The Project Shows Green Hydrogen Is Moving Beyond Announcements

Green hydrogen has generated enormous interest over the past several years, but many announced projects have struggled with high costs, financing challenges and uncertain demand. Some developments have been delayed, resized or cancelled before reaching construction.

The NEOM project stands out because physical construction has now been completed. That does not guarantee immediate commercial success, but it moves the project much closer to proving whether green hydrogen can work at the scale that governments and energy companies have been discussing.

2027 Will Be a Critical Year for NEOM Green Hydrogen

The next major test will come when the facility begins commercial operations. Engineers still need to complete commissioning, integrate the renewable power system with the electrolysers and ammonia production units, and demonstrate that the plant can operate reliably at its intended capacity.

If production begins as planned in 2027, the NEOM Green Hydrogen Project could become an important reference point for the global hydrogen industry. Its performance could influence future investment decisions, clean-energy policies and the development of international hydrogen and ammonia supply chains.

Construction is essentially finished. What happens next will determine whether one of the world’s most ambitious green hydrogen projects can deliver on its promises.