A global alliance for everything green in Riyadh? A US-China delegation is in Saudi Arabia to explore establishing a Riyadh-based global alliance of multinational companies to invest in the green economy and efforts to reach net zero, Saudi-owned Asharq Al Awsat reports. The visit is part of efforts by Saudi Arabia to put the kingdom on the map for green energy transition.

Who is in: US businessman Neil Bush, who is heading the delegation, told Asharq the proposed consortium includes investment management firm Atlas Renewable, energy storage solutions provider Energy Vault, Chinese environmental engineering services provider China Tianying Group (CNTY), and semi-governmental organization EIPC. Abdullah Zaid Al Meleihi, chairman of Saudi Excellence Co, the Saudi partner of the proposed alliance, said the consortium will outline a global work plan that aligns with the expected benefits of green energy.

What we know: The consortium will see US and Chinese renewables companies provide the necessary wind and solar power and energy storage equipment to support the renewables industry in Saudi Arabia’s zero carbon industrial park, Bush told the news outlet. “We will work on pumping large investments and will bring together top technologies from the US and China to implement major projects in Saudi Arabia and work on achieving its ambitious goals on carbon … Manufacturers will be brought to Saudi Arabia to produce equipment that can meet [domestic] needs in Saudi and also be exported to the region,” he added.

And that’s not all: The alliance will establish an investment fund for low-carbon circular economy techniques in the region and a global initiative that aims to provide clean fuel solutions, Al Meleihi said. He set total investments for both initiatives at SAR 39 bn (c. USD 10.4 bn), with Saudi Arabia contributing 15% of total investments.

All part of an ambitious plan by Riyadh: Saudi Arabia aims to become the world’s biggest green hydrogen producer under efforts to diversify its economy away from oil sales. It hopes its USD 8.4 bn utility-scale green hydrogen facility in Neom will help it become a leader in clean fuel in the coming decades. Construction of the first phase of the mega plant will commence “within the next four months,” officials said this week. The plant promises to be the world’s largest utility-scale green hydrogen facility, producing 1.2 mn tons of green ammonia annually. It will source its power needs from renewable energy projects totaling nearly 4 GW and is expected to be operational in 2026. All of the plant’s output is planned for global export, mainly to the EU, specifically Germany, through an exclusive long-term agreement with Air Products.

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