Saudi Arabia continues to demonstrate real determination and concrete steps in the energy transition process. Through its investments and projects, the country is becoming a leader in the process of creating a new energy map in the world. But also more than that. With its ambitious plan and strong political strategy, the key player in the fossil fuel era is building its significant leadership position in the new green energy map of the world.
As always, in these times of great change, tearing down the old world we know and building a new world of rapid technological advancement and building sustainable ecosystems, the leadership position is reserved for the brave who understand the importance of change and adapting to it. Of course, let’s not forget the money factor. Investments and strategic plans are one of the most important factors in obtaining a seat in the leadership tribune of the world.
Clearly, Saudi Arabia has the courage, vision, and desire for rapid change, money, and expertise to accelerate the green transition process.
Through the political-economic program Vision 2030, Saudi Arabia has outlined significant targets for reducing CO2 emissions and replacing fossil fuels with renewable sources. In addition to other projects, the NEOM Green Hydrogen Company (NGHC) project is significant. It is the largest producer of green hydrogen in the world, and the project is the work of joint investments of ACWA Power and Air Products.
This significant strategic facility, whose construction began last year, will be stationed at three locations and will be connected to a green hydrogen plant. For the production of green hydrogen, renewable energy from the sun and wind, of about 4 GW, will be used exclusively. 1.2 million tons of green hydrogen will be produced annually. Saudi Arabia has excellent natural resources for harnessing solar and wind energy, and the project is based on proven technologies. Green hydrogen will be intended for the world market and will be distributed globally.
This project is significant because it will directly contribute to the decarbonization of transport and industry. According to initial estimates, carbon dioxide emissions will be reduced by almost five million tons through this project. Adequate resources in Saudi Arabia, solid expertise, and investment potentials create excellent prerequisites for the economical production of green hydrogen. This arrangement of the project enables the sustainability and profitability of the project, which is the largest of its kind in the world.
The production of green hydrogen should provide renewable energy for over 20,000 buses in the world, out of a total of 3 million. This points to the need for many more such projects to provide greater amounts of green hydrogen for transport and industry. However, the NEOM project shows how important the implementation of this type of project is for the global energy transition. In that direction, cooperation, the exchange of knowledge, experiences, and visions, as well as continuous cooperation and education, is of key importance for creating the best possible conditions for the realization of such projects.
Although it is a huge project, the significance of which exceeds only the regional aspect, also acquires global significance, this project will be realized in a relatively short period of time. According to the announcements, the project will be ready by the end of 2026 and will start delivering green hydrogen to world markets.