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Saudi Arabia will begin producing hydrogen fuel next year for buses and trucks, the CEO of Neom Green Hydrogen Company said on Tuesday.
Hydrogen production for buses and trucks will begin mid-2024, CEO Dave Edmondson said.
NEOM Green Hydrogen Company—an equal joint venture by ACWA Power, Air Products, and NEOM—said earlier this month that it had reached the financial close on another part of its hydrogen ambitions: the world’s largest green hydrogen production facility, which will need total investments of $8.4 billion. That larger project is being financed with $6.1 billion non-recourse financing from 23 local, regional, and international banks and financial institutions, NEOM Green Hydrogen Company said in a statement last week. The hydrogen mega-plant will integrate up to 4 gigawatts (GW) of solar and wind energy to produce up to 600 tons per day of carbon-free hydrogen by the end of 2026, in the form of green ammonia, Neom said last week. Most of that will be exported.
The plants will likely be adjacent to each other.
Neom has plans to build another green hydrogen plant in Saudi Arabia as well, which is scheduled to start up in 2028 or 2029.
Hydrogen is still a pricey alternative to fossil fuels, but Edmondson said efficiencies learned would help to bring down the costs for other facilities while government and corporate policies helped to solidify demand for greener alternatives.
There are a multitude of hydrogen projects being discussed and announced around the globe, but very few of them have managed to secure funding and begin construction. One of the challenges in securing financing for large hydrogen projects is finding commitments from customers.
The funding and cost dilemma hasn’t stopped everyone from touting green hydrogen as the next generation fuel that will help to save the planet.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.