The Neom Green Hydrogen Company has taken a significant step by receiving its first batch of wind turbines, marking an important milestone in Saudi Arabia’s ambition to become a leader in hydrogen production. This development is part of a broader strategy by the Saudi Public Investment Fund (PIF) to invest approximately $10 billion into green hydrogen through its new subsidiary, Energy Solutions Company.
Energy Solutions Company will primarily focus on low-carbon fuel development, with reports indicating collaboration with Saudi Aramco. Cord Landsman, former CEO of Thyssenkrupp Uhde, is expected to lead the venture, which is set to formally launch soon.
- PIF plans a $10 billion investment in green hydrogen.
- Energy Solutions Company will spearhead low-carbon fuel projects.
- $8.5 billion funding secured for the Neom Green Hydrogen Project.
In recent developments, Saudi Arabia has announced a series of hydrogen projects managed by PIF as part of its energy transition strategy. The Neom Green Hydrogen Project, a collaboration involving long-term debt and equity, is pivotal to these plans. Additionally, in a move to advance green hydrogen, French utility Engie and PIF signed an agreement for projects in Saudi Arabia.
Globally, at least 17 countries and the EU have already established hydrogen strategies, with many others in the process of developing theirs.
The Hydrogen Rainbow
- Green hydrogen: Produced via carbon-neutral water electrolysis.
- Turquoise hydrogen: Derived from methane pyrolysis.
- Blue hydrogen: Created by steam reduction of natural gas.
- Grey hydrogen: Obtained through steam reforming fossil fuels.
- Red, pink, and violet hydrogen: Electrolysers powered by nuclear energy.
- Yellow hydrogen: Produced from a mix of renewable and fossil fuels.
- White hydrogen: A byproduct of chemical processes.
- Brown hydrogen: Results from coal usage as a fuel.
