NEOM Green Hydrogen Project Enters Commercial Phase: Implications for Trinidad Ammonia

The NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products and NEOM, has officially entered the commercial production phase of its 4 gigawatt (GW) green hydrogen project in north-western Saudi Arabia. Located in Oxagon, the plant will produce up to 600 tonnes of green hydrogen per day, equivalent to 1.2 million tonnes of green ammonia per year, all of it earmarked for export to European and Asian markets under a 30-year offtake agreement with Air Products.

The US$8.4 billion project relies on 4 GW of solar and wind capacity, alkaline electrolysers from Thyssenkrupp Nucera, and a dedicated ammonia loop. Levelised cost of hydrogen is reported at under US$2 per kilogramme, well below the US$4-5 per kilogramme benchmark seen in most European green hydrogen projects. The commercial start-up is a watershed moment for the global hydrogen economy and signals that the Gulf is positioning itself as the OPEC of low-carbon molecules.

For Trinidad and Tobago, the implications are profound. Point Lisas hosts seven world-scale ammonia plants operated by Yara, Nutrien (Tringen and PCS Nitrogen) and Proman, producing roughly 5.2 million tonnes per year of grey ammonia, all of it derived from natural gas via steam methane reforming. Although Trinidad remains a top-three global exporter of ammonia, its product is increasingly under scrutiny in European markets, where the Carbon Border Adjustment Mechanism (CBAM) will apply to ammonia imports from 2026 onwards.

The Energy Chamber of Trinidad and Tobago has been vocal about the need to decarbonise the Point Lisas value chain. Proman and its partners have announced the Trinidad and Tobago Green Hydrogen Roadmap, targeting 300 megawatts (MW) of electrolyser capacity by 2030, anchored by solar PV installations in Couva and wind potential off the south-east coast. The roadmap envisages green ammonia production of up to 200,000 tonnes per year, a fraction of NEOM's output but enough to maintain access to premium European markets.

Financing remains the key constraint. Unlike NEOM, which benefits from sovereign backing and concessional debt from the Saudi Public Investment Fund, Trinidad's projects must compete for international project finance at commercial rates. The Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB) have signalled willingness to support feasibility studies, while the European Investment Bank has indicated potential interest under its Global Gateway initiative.

Beyond ammonia, NEOM's commercial start-up will reshape global shipping routes for clean fuels. Tankers loading green ammonia at NEOM's Duba terminal will sail via the Suez Canal to Rotterdam and Hamburg, intensifying competition with Caribbean producers. For Trinidad, the strategic response will need to combine carbon capture and storage (CCS) on existing grey ammonia plants, parallel investment in green hydrogen, and partnerships with European offtakers willing to pay a premium for transition molecules. The Atlantic LNG consortium has also signalled interest in repurposing some infrastructure for ammonia exports beyond 2035.