Air Products, the world’s largest hydrogen producer, plans to power a massive green hydrogen plant using 4 gigawatts of renewable Saudi electricity.
Air Products & Chemicals, the US gas industry giant, has announced plans to build a green hydrogen plant in Saudi Arabia powered by 4 gigawatts of wind and solar power, the largest project of its kind announced to date.
The $ 5 billion plant will be jointly owned by Air Products, Saudi Arabia ACWA Power and Neom, a new mega-city planned near Saudi Arabia’s borders with Egypt and Jordan.
Fully operational facility will produce 650 tonnes of green hydrogen every day, enough for around 20,000 hydrogen-powered busesAir Products said. the the fuel will be shipped as ammonia to end markets globally, then it will be converted back to hydrogen. Ammonia production is expected to start in 2025.
Pennsylvania-based Air Products claims to be the world’s largest hydrogen producer and a leader in liquefied natural gas technology. The company is listed on the New York Stock Exchange with a market value of nearly $ 60 billion.
This project would be a major step forward for Saudi Arabia’s ambition to make Neom a major global hub for renewable energies and green hydrogen. The country establishes Neom as a Special Economic Zone, with the ambition to welcome 1 million people from all over the world.
This is a crucial moment for the development of Neom and a key part of the Saudi Vision 2030 that contributes to the Kingdom’s clean energy and circular carbon economy strategy.
Nadhmi Al Nasr, CEO of Neom.
Air Products CEO Seifi Ghasemi said the company was confident the project would be viable without subsidies given the acceleration of the global race for low-carbon transportation fuels. Any government support would be “the icing on the cake”.
There are 260 million commercial vehicles in the world. If 1% is converted to hydrogen, you end up with a huge number that would require 50 plants like this. We have been working on it for four years and our strategy was to be the first to build a large-scale factory.
Seifi Ghasemi, CEO of Air Products.
In addition to the $ 5 billion plant, the project will require new $ 2 billion distribution infrastructure, which will be owned by Air Products.
Several of the major oil and industrial players are rapidly stepping up their investments in green hydrogen. BP is studying the feasibility of an ammonia plant in Australia, powered by 1.5 gigawatts of solar and wind power.
“Hydrogen is no longer a niche”Said Christoph Noeres, responsible for hydrogen storage and energy at Thyssenkrupp. “It will enable the sector to move closer to achieving the climate objectives of the Paris Agreement. Hydrogen has been identified as the key component of sustainable fuels and chemicals and can reduce or avoid CO2 in areas where electrification is not possible“.