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Green Hydrogen H2 News

L&T Takes Center Stage in NEOM’s Ambitious Green Hydrogen Endeavor

Anela DoksoBy Anela Dokso01/06/20233 Mins Read
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India-based Larsen & Toubro (L&T) has achieved significant milestones in the power transmission and distribution aspects of the world’s largest green hydrogen project located in NEOM, Saudi Arabia.

L&T’s power business has made remarkable progress in surveys, design, engineering, and procurement for the project, which aims to produce green hydrogen at scale for global export. With a total investment of $8.4 billion, the project has achieved full financial close and is moving ahead with construction.

L&T, having secured a $2.779 billion engineering, procurement, and construction (EPC) contract from NEOM, will be responsible for multiple components of the project. This includes the construction of a 2.2 GWac PV solar plant, 1.65 GW wind generation balance of plant, and a 400 MWh battery energy storage system. L&T will also construct switching stations, overhead lines, and underground cables required for the Kingdom’s grid network, along with the implementation of an energy power monitoring system (EPMS).

The NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products, and NEOM, is spearheading this ambitious project. The goal is to produce green hydrogen and export it in the form of green ammonia, leveraging the vast potential of renewable energy in the region. With the support of numerous local, regional, and international financial institutions, the project has gained strong financial backing, enabling the construction to progress swiftly.

The NEOM green hydrogen project not only holds immense significance for Saudi Arabia but also for the global energy transition. Green hydrogen, produced through electrolysis powered by renewable energy sources, offers a clean and sustainable alternative to conventional fuels, with the potential to decarbonize various industries. The project’s scale and ambition demonstrate a commitment to advancing the use of green hydrogen on a large scale, facilitating the global shift towards a low-carbon future.

However, several challenges need to be addressed to ensure the successful implementation of such a groundbreaking project. Technology scalability, cost-effectiveness, and the availability of renewable energy resources are crucial considerations. Collaborations between governments, industry leaders, and research institutions will play a vital role in overcoming these challenges and accelerating the development and adoption of green hydrogen.

L&T’s involvement in the NEOM green hydrogen project showcases the company’s engineering prowess and its commitment to sustainable energy solutions. By undertaking the construction of renewable energy infrastructure and power transmission systems, L&T contributes to the growth of the green hydrogen sector, bringing the world closer to achieving carbon neutrality and a cleaner, more sustainable future.

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