ACWA Power, the energy producer backed by Saudi Arabia’s sovereign wealth fund, sees big opportunities in the hydrogen market but the company isn’t planning to add another hydrogen project to its portfolio for some time until its venture with NEOM and Air Products is at an advanced level, its CEO said.

Air Products, in conjunction with ACWA Power and NEOM, signed an agreement last year for a $5 billion venture to produce 650 tons per day of green hydrogen by heating water using renewable energy, as well as 1.2 million tons per year of green ammonia for exporting the hydrogen to the global market. The project, which will be built in NEOM, is scheduled to be onstream in 2025.

Acwa Power went into the hydrogen project at NEOM for three main reasons, said Padamanthan. First, its ability to reduce the cost of energy used in the project. Second, the advantage it gets from selling power on a long-term basis, and finally, its expertise in building complex projects from scratch.