June 03, 2025 [Renewables Now]- Construction works at the 2.2-GW Neom green hydrogen project in northwestern Saudi Arabia are advancing, reaching 80% completion amid reports about weak demand, with only one committed international buyer secured so far.
The green hydrogen facility, wind and solar energy plants and transmission grid are already 80% completed as equipment is being received and installed, including wind turbines, hydrogen storage vessels, electrolysers, cold box and pipe racks, co-owner Air Products has announced.
The US industrial gases company, which is the sole offtaker and owner of about a third of the project, reaffirmed that the 4 GW solar and wind power generation sites are scheduled for completion by mid-2026. The first ammonia availability is expected in 2027, as planned.
The announcement comes on the heels of a report by Bloomberg suggesting that the developers of the USD-8.4-billion (EUR 7.35bn) project are weighing plans to slow the full buildout due to the lack of offtakers.
The output from Saudi Arabia’s flagship green hydrogen project was originally intended primarily for export, but as demand for green hydrogen on international markets is weaker than expected, the focus is reportedly being shifted to domestic consumption, which, however, remains uncertain.