Latest news with #NEOMGreenHydrogenProject
Borneo Post
5 days ago
- Business
- Borneo Post
Saudi's ACWA Power reaffirms S'wak green hydrogen partnership, eyes NEOM-scale development
Abang Johari (sixth right), Mohammad Abunayyan on his left, join Abdul Aziz (sixth left) in a photocall with the delegation. – Photo from Sarawak Premier's Office KUCHING (Aug 8): ACWA Power founder and chairman Mohammad Abunayyan paid a courtesy visit to Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg today, reaffirming the company's strategic partnership with SEDC Energy Sdn Bhd (SEDCE) to develop large-scale green hydrogen projects in the state. According to a press release, the visit underscores ACWA Power's commitment to replicate the scale and ambition of its flagship NEOM Green Hydrogen Project in Saudi Arabia for Sarawak. Currently under development, NEOM is the world's largest green hydrogen project, targeting 4GW of renewable power to produce 600 tonnes of green hydrogen per day. The US$8.4 billion initiative aims to position Saudi Arabia as a global leader in the hydrogen economy ― a vision aligned with Sarawak's clean energy vision. The collaboration is also part of ACWA Power's US$10 billion investment commitment to Malaysia, announced during the Asean-GCC Summit in May this year, with Sarawak expected to benefit from infrastructure, technology transfer, and economic spillovers. In Sarawak, ACWA Power and SEDCE are jointly exploring the development of a green hydrogen facility powered by up to 4GW of captive renewable energy, delivering 2GW of electrolyser capacity for both export and domestic decarbonisation. The companies formalised the basis of this collaboration through an agreement signed last year. Both parties are also in discussions with Sarawak Energy Berhad (SEB) to explore floating solar projects in Batang Ai and Murum hydroelectric dams, and with the State Ministry of Utilities and Telecommunications and the State Ministry of Energy and Environmental Sustainability to ensure regulatory alignment. The cooperation supports Sarawak's Post Covid-19 Development Strategy (PCDS) 2030, the National Energy Transition Roadmap (NETR), and the Sarawak Hydrogen Economy Roadmap (HETR), while strengthening clean energy ties between Malaysia and Saudi Arabia. Also present at the meeting were Sarawak Economic Development Corporation (SEDC) chairman Tan Sri Datuk Amar Abdul Aziz Husain, general manager Datu Abdul Hadi, chief investment officer Haji Zainnurain Othman, SEDCE CEO Dennis Harun Wong, ACWA Power senior advisor to the chairman Tan Sri Azman Mokhtar, country director Mathew Chandapillai, executive vice-president of business development (Middle East/Global Water) Udyan Seth, director of business development and projects Azhari Sulaiman, and Advisor to Chairman ACWA Power Co Dato JIV Sammanathan. Abang Johari ACWA Power green hydrogen projects SEDCE
Yahoo
13-06-2025
- Business
- Yahoo
Saudi Arabia's Giant Hydrogen Project Reaches 80% Completion
Saudi Arabia's flagship NEOM Green Hydrogen Project has crossed a major milestone, with 80% of its construction work now complete across multiple sites, according to project partner Air Products (NYSE:APD). The sprawling project includes a large-scale green hydrogen production facility, solar and wind power farms, and an integrated transmission grid. The entire complex is expected to begin operations within two years, positioning it as the largest renewable-powered ammonia production facility globally. Air Products confirmed that the 4 GW of combined solar and wind generation capacity remains on track for completion by mid-2026, with the first shipments of ammonia-based green hydrogen projected to start in 2027. Situated in NEOM, the futuristic megacity under development in Saudi Arabia, the green hydrogen venture is jointly owned by ACWA Power, Air Products, and NEOM itself. Once fully operational, the facility aims to produce up to 600 metric tonnes of green hydrogen daily, converted into ammonia for easier transport and export—a key solution for industrial and transportation decarbonization worldwide. According to the NEOM Green Hydrogen Company (NGHC), the project is aligned with Saudi Arabia's Vision 2030 and its Saudi Green Initiative. NGHC estimates that its production could offset approximately 5 million metric tonnes of CO? annually, roughly equivalent to removing 210,000 vehicles from the road. Hydrogen Headwinds, Saudi Tailwinds Saudi Arabia's steady progress comes as many green hydrogen projects elsewhere face significant headwinds. Globally, offtake agreements, a critical component for project financing, remain scarce. BloombergNEF estimates that only about 12% of green hydrogen plants worldwide have secured firm customer purchase commitments. High upfront costs and the need for expensive industrial retrofits deter many potential buyers. Compounding this, green hydrogen remains up to four times more expensive than hydrogen produced from natural gas (gray hydrogen).Nevertheless, NGHC has made notable progress on this front. In March 2025, Saudi utility ACWA Power signed a memorandum of understanding with Germany's SEFE (formerly Gazprom Germania) to supply up to 200,000 tonnes of green hydrogen annually by 2030. While not yet a binding sales contract, the agreement signals strong interest from European buyers and contributes to ongoing efforts to establish a "hydrogen bridge" between Saudi Arabia and Europe. As a result, NGHC has tentative demand commitments for a significant portion of its projected production capacity. Saudi Arabia's Dual Strategy: Green Energy and Oil Expansion While Saudi Arabia is ramping up investments in renewable energy and hydrogen, it continues to maintain its dominant position in oil and gas. Last year, Saudi Aramco announced dozens of new research and development projects at its Dhahran headquarters aimed at reducing emissions while continuing to produce roughly 9 million barrels of crude oil daily. Aramco projects that these technology advancements could lower its emissions by 15% by 2035, equivalent to 51.1 million metric tonnes of CO? annually. 'Our strategy is not about replacing one source with another, but rather about improving the efficiency and sustainability of all forms of energy to meet growing global demand,' said Ahmad Al-Khowaiter, Aramco's executive vice president for technology and innovation. Part of this strategy includes major investments in carbon capture and storage (CCS). At its Hawiyah gas processing facility, Aramco is capturing carbon dioxide for enhanced oil recovery, injecting it into underground reservoirs located 50 miles away. The company aims to reduce the cost of carbon capture by 50% to ensure commercial viability and has set a target to store around 9 million tonnes of CO? annually at its Jubail facility starting in 2028. In parallel, Aramco has expanded its hydrogen portfolio, acquiring a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra—a joint venture between Air Products and Qudra Energy of Saudi Arabia. Diversifying Beyond Energy: Mining Sector Expansion In addition to energy diversification, Saudi Arabia is accelerating the development of its mining sector, aiming to increase its contribution to GDP from $17 billion to $75 billion by 2035. Recent initiatives include partnerships with international mining companies such as Barrick Gold, Ma'aden, Zijin Group of China, and India's Vedanta. In December 2024, the Kingdom finalized nine investment deals worth over 35 billion riyals ($9.3 billion) under its Global Supply Chain Resilience Initiative, targeting critical minerals needed for battery technologies and global supply chains. 'These agreements strengthen Saudi Arabia's position as a key supplier of critical materials while building domestic manufacturing capacity and promoting sustainability,' said Khalid Al-Falih, Saudi Minister of Investment. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
