Construction of the Neom project in Saudi Arabia is 80% complete, according to an update from industrial gas major Air Products.
The ambitious project comprises a green hydrogen facility, wind turbines, solar farm, transmission grid, hydrogen storage vessels, electrolysers, cold box and pipe racks. The 4GW solar and wind power generation sites are scheduled for completion by mid-2026, with the first ammonia expected to be produced in 2027.
The update follows a strategic change of direction in relation to Neom, which was set out in last month in which Air Products recorded a .
The company is now looking to sell green ammonia from the site to fill any revenue gaps, given ongoing challenges in the green hydrogen market.
As a result of the shift, it will delay downstream investments in Europe – including ammonia import terminals – until “specific regulatory frameworks” are clear for each country, and it has “firm customer commitments.”
Mantle Ridge – the activist investment firm which led the push against Air Products and its prior hydrogen strategy – had heavily criticised the Neom development.
Aside from an estimated $2.8bn capital spend on the plant, Air Products also assumed full EPC liability for the development, as well as all the offtake risk. That is now not the plan, though alternative arrangements are not yet confirmed.
