Imagine a destination where ESG investment is so impactful that its influence will shape the evolution of sustainable urban living across the entire world.
NEOM, a region in northwest Saudi Arabia, is being built from the ground up beside the Red Sea as a blueprint for future cities and as the world’s primary destination for investment with purpose.
A blank canvas for fresh thinking and new solutions that spans territory the size of Belgium, NEOM aims to set a global benchmark for ESG while maximizing financial returns for partners.
“ESG is in NEOM’s DNA. We hope the innovations we make here will be adopted by the wider world because only by working together can we truly tackle substantial issues facing the world today such as climate change, financial inclusion and access to clean water, among others.”
— Dr. Manar Al Moneef, NEOM Chief Investment Officer.
One example of how NEOM and its investment partners are co-creating the future is through NEOM Green Hydrogen Company (NGHC), which is an equal joint-venture created by ACWA Power, Air Products and NEOM to build the world’s largest plant to produce green hydrogen at scale.
Once the plant at NEOM is operational by 2026, 100% of the green hydrogen produced will be available for global export, in the form of ammonia, through an exclusive long-term agreement with Air Products.
The Middle East, and in particular Saudi Arabia, are perfectly positioned for such a project because of the availability of sun during the day and wind at night. Leveraging this unique combination, this multi-billion-dollar plant, which will be constructed by Air Products as EPC contractor, will run on renewable energy and produce green hydrogen using over 2.2 gigawatts (GW) electrolysis technology supplied by tk NUCERA. Haldor Topsoe, a chemical manufacturer and global decarbonizing technologies supplier, will provide the technology to produce up to 1.2 million tons of green ammonia per year with Baker Hughes the selected technology partner for hydrogen compression. Air Products will also deploy their own air separation technology.
NEOM is one of the most important projects under Saudi Arabia’s Vision 2030 mission to diversify its economy beyond oil. Recognizing the need for fresh thinking to mitigate climate change, NEOM aims to be a pioneer of sustainable innovation. Its ideas can benefit the world and reward investors, says Al Moneef. “We will contribute to the knowledge economy and enable the intellectual property that will transform the way we live, while at the same time delivering financial returns.”
There are already more than 2,200 people living and working in NEOM, which is attracting an international community of talent while providing jobs for young Saudis in innovative roles. Some are working at NEOM Energy Labs, which is coordinating R&D, education, start-ups and investment to scale up energy innovations, including next-generation solar power. Saudi Arabia has some of the best conditions for solar power in the world, with annual average solar irradiance of 2,300 kilowatt-hours per square meter (kWh/m2).
NEOM’s advantage is that, by building from the ground up, it offers ESG-driven investors opportunities to co-create the future by investing across multiple sectors. “Investors will be able to cross-pollinate across industries, so that a single partner might invest in automation, advanced manufacturing and water desalination,” says Al Moneef.
Investors will also benefit from the transparency of a fully inclusive economy, backed by progressive laws and a regulatory system designed to provide unrivaled ease of business. Unlike legacy cities that often retrofit ESG, NEOM has from its outset introduced ESG regulations that foster compliant practices, measurement and reporting.
NEOM introduced high environmental standards from the start and has embedded sustainability principles into every aspect of its operations. “We have worked to bridge our responsibility to delivering value with our responsibility to protecting the planet,” says Al Moneef. “We do not believe that the two exist in silos.” The chief investment officer points out that 95% of the NEOM region is set aside for conservation. “We will work with, not against, our natural assets,” she says.
NEOM’s pioneering methods in clean energy production and conservation are being deployed at three flagship projects which are already underway.
THE LINE is using a 170-kilometer ultra-high-speed transit to connect communities living along a route between the coast and mountains – all completely powered by clean energy – allowing residents to access their daily needs within a five-minute walk. THE LINE is based on NEOM’s commitment to five fundamental ESG principles: sustainability, nature, technology, livability and community.
Then there’s OXAGON, set to become home to advanced and clean industries in NEOM. Announced last year, the development has said it aims “to transform how industry operates, driving greater efficiencies in production and significantly influence supply chains”. One of the main reasons for this is OXAGON’s location on the Red Sea, which is where 13% of global trade pass by annually. The city will be powered by renewable energy and will have a mix of advanced manufacturing facilities, next-gen automated port and integrated logistics zone and residential communities accessible to a wide range of demographics. It will also comprise the world’s largest floating structure with a 7-kilometer diameter which will focus on advancing blue economy industries. Overall, the ambition coming out of OXAGON is quite clear – a blueprint for industry, technology and people to co- exist in harmony with nature.
TROJENA, a year-round mountain destination, is developing advanced livability with an interconnected community and is expected to contribute 10,000 jobs and have a $800 million impact on NEOM’s GDP. Situated around a freshwater lake, 2,600 meters above sea level and only 50 kilometers from the coast, TROJENA will have over 30 kilometers of ski slopes and host 700,000 annual visitors and be home to 4,000 residents by 2030. Some of the activities available will include paragliding, snowboarding, mountain biking, yoga retreats and art festivals. TROJENA was selected as the host venue for the Asian Winter Games 2029.
”NEOM can redefine the way the world does business and conservation,” says Al Moneef. “We aren’t just talking ESG, we’re living it.”