Hydrogen development shifts to the Middle East

US company Air Products is reshaping its clean hydrogen strategy. The company has decided to scale back projects in the United States and strengthen its position in Middle Eastern markets.

As reported by RenewablesNow, the conglomerate announced its involvement in one of the world's largest green hydrogen projects in Saudi Arabia. By contrast, it is minimising its presence in the US market. These changes reflect the challenges facing emerging hydrogen markets, where energy companies are adjusting their investment plans to demand that is lower than originally expected.

The US company, which is primarily involved in industrial gases, announced that it would shut down its green liquid hydrogen plant in Casa Grande, Arizona. The plant, which used renewable electricity to power its electrolysers, was capable of producing up to 10 tonnes of green liquid hydrogen a day, primarily for California's transport sector. The company said the decision was driven by weak commercial demand and slower market growth.

The shutdown is part of a broader review of the company's clean energy portfolio. The company has also decided to abandon its planned Louisiana Clean Energy Complex.

Saudi Arabia's megaproject moves ahead

Air Products, by contrast, is continuing with its flagship investment in Saudi Arabia. Specifically, the company is finalising a marketing and distribution agreement with a Norwegian ammonia producer as part of the NEOM Green Hydrogen project.

At the end of March this year, construction of the NEOM facility was around 90% complete, bringing the project closer to commercial operation. Once completed, it is expected to be one of the world's largest green hydrogen plants, using up to 4 GW of combined solar and wind power and 2.2 GW of electrolyser capacity.

The project is designed to produce up to 600 tonnes of carbon-free hydrogen a day. Rather than being transported directly, the hydrogen will be converted into green ammonia, making it easier to ship to other markets for use in industry, power generation and other low-carbon applications.

Under a 30-year supply agreement, Air Products has exclusive rights to purchase the ammonia produced at the plant. The project is being developed in partnership with Saudi energy project developer ACWA Power and NEOM.