NEOM - V2

an Investment Destination Ready for Business

Abu Dhabi

of the world’s population live within eight hours flying time of Abu Dhabi.

80%

Building the World’s Largest Renewable Energy Ecosystem

Energy production and use around the world has long been the leading cause of unsustainable living. Energy accounts for two-thirds of total greenhouse gas emissions[1], and is primarily responsible for warming the climate and the resulting large-scale shifts in weather patterns, wildlife populations and sea levels. Under a business-as-usual scenario, by 2030 the world faces a minimum of $2 billion a day in economic losses from weather events, severely impacting human health, livelihoods, food, water and biodiversity[2]. “Building a 100% renewable energy ecosystem at scale has never been done before,” says Peter Terium, Head of the Energy Sector for NEOM, the planned $500 billion, 10,230-square-mile mega-region of the future that includes THE LINE. “Most countries that have set ambitious targets go for 40% or 50%, and that’s doable. But the second step, from 40% or 50% to 100%, is really a challenge. We want to do that in the next 10 years.”

THE LINE—a 105-mile-long belt of hyperconnected communities in Saudi Arabia—is taking on the global energy challenge by pledging to create a vast carbon-free ecosystem to power these communities

“Building a 100% renewable energy ecosystem at scale has never been done before. We want to do that in the next 10 years.”

Head of the Energy Sector, NEOM

Peter Terium

THE LINE, which will link Saudi Arabia’s Red Sea coast in a straight line to mountains and valleys in the country’s interior, is betting on the NEOM region’s unrivaled solar-by-day, wind-by-night climate profile to quickly reach its zero-carbon goal. “I think we can do it because we have the unique combination of sun in the daytime and wind mainly in the evening and during the night, and these two complementary technologies will allow us to achieve a 100% mix of renewable electricity within the years to come,” says Terium. “Most concepts stall because it’s too expensive to make a 100% renewable fuel mix with the combination of resources available. We want to be able to demonstrate that not only is this technically possible, but it is also economically possible.”

Progress to Date

Since 2017, Saudi Arabia has embarked on a strategy to exponentially expand its solar and wind capacity, and has targeted private-sector investment through contracts awarded at auction-style tenders under its National Renewable Energy Program. In early 2019, the government announced new renewable energy targets, aiming to generate 27.3 GW by 2023 and 57.8 GW by 2030.

Construction of THE LINE will begin this year. “We are already embarking on a master plan to work out the infrastructure that needs to be in place, what the grid design looks like, microgrids for the city environment and PC-based transport grids for the larger distances,” explains Terium. “All of it is in the design phase, and we are going to build a lot of that in the next months and years.” Beyond producing renewable energy from the sun and wind, THE LINE will also become a production site for hydrogen produced with low environmental impact. In July 2020, NEOM signed an agreement with ACWA Power and Air Products to build the world’s largest green hydrogen plant—a $5 billion venture that will produce more than 4 GW of solar and wind power and yield 650 tons per day of hydrogen and 1.2 million tons per year of ammonia. NEOM calculates that the plant will save more than 3 million tons of CO2 emissions annually once it comes on line in 2025.

THE LINE aims to build on Saudi Arabia’s energy-exporting knowhow, infrastructure and assets—the Kingdom is the world’s largest exporter of crude oil—through new hydrogen and ammonia exports. While exporting electricity has its limitations—requiring long cables that often cross difficult terrain, with the potential for line losses—green hydrogen can be exported by road, pipeline or tanker. From NEOM’s Red Sea coast ports, this hydrogen will reach European and Asian markets, positioning the country as a pioneer in renewable technology and ensuring that the Saudi energy sector continues to be both a substantial contributor to GDP and an engine of skilled job creation. “ACWA is a proud partner in NEOM’s pioneering venture into the global green hydrogen market,” says Mohammad Abunayyan, Chairman of ACWA Power. “This groundbreaking project will see Saudi Arabia set new global benchmarks for green hydrogen, fueled by our shared commitment to environmental stewardship and to bring a circular carbon economy to life here in Saudi Arabia, in line with the Kingdom’s Vision 2030 to become a global leader in the energy transition.”

From Oil to Hydrogen Exporter

The NEOM region provides a set of specific features that make a green hydrogen economy viable. Beyond the availability of low-cost, renewable energy for competitive green hydrogen production, NEOM’s strategic location and the Kingdom’s existing energy infrastructure and logistic assets provide strong support for the national Vision 2030 plan to diversify the economy away from oil and gas to ensure Saudi Arabia’s sustainability. NEOM has formed partnerships with the country’s leading energy suppliers, including Saudi Aramco, the national oil company, and SABIC, one of the world’s largest petrochemical manufacturers.

Building THE LINE’s radical energy ecosystem requires entrepreneurial human talent with a range of expertise. Big Data and artificial intelligence experts will be required to manage the complex system that will integrate many individual producers and various wind and solar devices that produce electricity. THE LINE will also pioneer new forms of transport electrification and energy use, which will require the creation of new digital applications.

A Community of Dreamers and Doers

Sources: 1. www.iea.org/topics/climate-change 2. feu-us.org/behind-the-climate-pledges

ENERGY

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27.3 GW

by 2023

57.8 GW

by 2030

Saudi Arabia’s Renewable Energy Target

The World’s Largest Green Hydrogen Plant

$5B

Venture between NEOM and ACWA Power and Air Products

4 GW

Solar and wind power

4 GW

Solar and wind power

650

Tons of hydrogen a day

1.2 million

Tons of ammonia a year

3 million

Tons of CO2 emissions avoided annually

2025

Year on line

Green hydrogen will play a critical role in the effort to remove carbon from the energy production cycle in Saudi Arabia, a major goal of the circular carbon economy model the country is promoting as a sustainable, pragmatic and cost-effective approach to achieve ambitious climate goals. While renewables promote decarbonization primarily via electricity production, green hydrogen, which is produced using renewable energy, contributes to decarbonization of the parts of the energy sector that cannot be supported by electrification. Hydrogen produced with renewable energy generates zero emissions, and can be stored in high densities and used as fuel for transport and in power plants; in manufacturing industries such as steel, cement and food production; and as a chemical ingredient to make plastics, fertilizers, glass and steel. Technological advancements and falling costs continue to strengthen the market.

“The types of people that we want to build this future are exactly the dreamers and doers who are excited about exploring these new challenges,” says Terium. “What excites me most, even beyond the typical energy topics, is building a community and bringing together people to work on this. Innovation doesn’t have a passport, it doesn’t have a religion and it doesn’t have personal preferences. The heart of innovation is bringing together a very diverse society of many people, which in its diversity can develop these good ideas.”