A green coalition in KSA is happening: Saudi Arabian, American, and Chinese firms are launching a green energy investment company named Skytower to support and finance projects in the kingdom, Asharq Al Awsat reported this week. The agreement allows alliance members including US and Chinese non-governmental organizations to access the market and support green energy projects. No financial details or specific projects earmarked for funding were disclosed.

Who is in: The consortium includes 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, is the Saudi partner of the proposed alliance.

We knew this was coming: A US-China delegation visited Saudi Arabia in late May to explore establishing a Riyadh-based global alliance of multinational companies to invest in the green economy and efforts to reach net zero. The visit came under efforts by Saudi Arabia to put the kingdom on the map for green energy transition.

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 in May. 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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