The world's largest green hydrogen project ushers in a new era of Saudi energy transformation.

A Milestone in Energy Transition

In the NEOM region on the northwestern coast of the Red Sea in Saudi Arabia, the world's largest green hydrogen plant is moving from blueprint to reality. The project is being advanced by the NEOM Green Hydrogen Company (NGHC), a joint venture between NEOM, Saudi ACWA Power, and US industrial gas giant Air Products. It deploys 4 GW of wind and solar capacity, including 257 wind turbines and a solar farm the size of Manhattan, dedicated to powering electrolysis for hydrogen production. The project is designed to produce 600 tons of green ammonia per day, enabling long-distance hydrogen export via ammonia storage and transport.

In 2025, NGHC announced that construction was over 80% complete, with core facilities such as wind turbines, hydrogen storage tanks, electrolyzers, and the transmission network already in place. According to the plan, power generation facilities will begin operation in mid-2026, followed by electrolyzers in 2027, with green ammonia exports commencing soon after. Air Products has finalized marketing and distribution agreements with Norway's Yara to secure ammonia offtake channels.

Capital Shift Eastward Amid US Policy Retreat

After the Trump administration took office, US renewable energy policy shifted dramatically. A Wood Mackenzie report stated that 7 GW of renewable energy projects on US federal land were canceled or delayed, with another 12 GW at risk, and 80 GW of private land projects were also affected, putting a total of over $121 billion in investment at risk. The Regional Clean Hydrogen Hubs program was frozen, plunging the entire US green hydrogen industry into stagnation.

Air Products' decision epitomizes this trend. On June 30, 2026, the company announced the termination of multiple low-carbon hydrogen projects in the US, including the Louisiana Clean Energy Complex (natural gas + carbon capture route) and the liquid hydrogen project in Casa Grande, Arizona. Air Products cited "challenging commercial conditions, project-specific economic factors, and slower-than-expected development of certain markets" as reasons for the exits, while simultaneously accelerating the commercial operation of the Saudi green hydrogen project. This "shift eastward" is not an isolated phenomenon: New York's Plug Power turned to the H2 Hollandia project in the Netherlands, and green hydrogen startups such as Electric Hydrogen are also seeking overseas opportunities.

Saudi Strategy: From Oil Giant to Hydrogen Hub

The NEOM green hydrogen project is far from a single endeavor; it is a flagship of Saudi Arabia's Vision 2030 economic diversification blueprint. Saudi Arabia is leveraging its solar and wind resource endowments and its geographical advantage along the Red Sea coast to build a complete industrial chain from green hydrogen production to green ammonia export. Oxagon, as NEOM's industrial city, is positioned as a global center for green chemicals and hydrogen manufacturing.This project not only drives non-oil GDP growth but also secures a strategic position in global energy geopolitics. While Europe and the US slow their transition pace due to policy wavering, Gulf countries leverage concentrated sovereign capital investment, low-cost renewable energy, and the execution capability of state-owned enterprises to rapidly establish a scale advantage in green hydrogen. The hydrogen competition among GCC countries is already intense: the UAE and Oman have announced large-scale green hydrogen plans, while Saudi Arabia has taken the lead with the scale of a single project.

Long-term Impact: Reshaping the Global Energy Trade and Investment Landscape

From an investment perspective, the NEOM project demonstrates a model of synergy between the sovereign wealth fund (PIF) and global industrial capital. ACWA Power, as a key player in Saudi Arabia's energy transition, Air Products contributing electrolysis and gas separation technologies, and NEOM providing land and infrastructure—the three parties share risks. This structure is becoming a standard paradigm for large-scale Gulf projects.

For global energy markets, Saudi green ammonia exports will directly challenge the pricing system of traditional fossil-fuel-based ammonia. If the project achieves full production as planned, it could provide an affordable source of green hydrogen for Europe and East Asia, accelerating decarbonization in heavy industry and shipping. Meanwhile, the exit of US investors has instead solidified Saudi Arabia's position as a pioneer in green hydrogen exports.

Looking further ahead, the NEOM green hydrogen project is a preview of Saudi Arabia's economic cornerstone in the post-oil era. When global oil demand peaks, Saudi Arabia hopes to attract energy-intensive industries through low-cost green hydrogen and clean electricity, creating new comparative advantages. There is no irony or drama behind the project—only a well-calculated, long-term strategic deployment by Gulf countries. This is precisely the most noteworthy signal in the Middle East's economic transformation.