As the international community accelerates its transition towards a net-zero future, the energy sector is undergoing a profound and necessary transformation.

At the centre of this shift is green hydrogen, a sustainable fuel capable of powering industries that have traditionally relied on heavy fossil fuels. Unlike conventional hydrogen, which is extracted using natural gas, green hydrogen is produced entirely through the electrolysis of water, powered exclusively by renewable energy sources. This zero-emission profile makes it a critical asset in the international effort to mitigate climate change and restructure global energy grids.

However, the road to widespread commercial adoption is not without its hurdles.

Scaling Up and Logistical Barriers

The primary challenge facing the green hydrogen industry is the sheer operational scale required to make it commercially viable. For decades, green hydrogen has remained a boutique, experimental solution, heavily hindered by high production costs and the massive infrastructure needed to generate sufficient renewable electricity.

Furthermore, transporting raw hydrogen over long distances presents a formidable logistical barrier. The element suffers from a notoriously low volumetric energy density and requires highly pressurised or cryogenic storage solutions to move securely. To truly decarbonise hard-to-abate sectors such as heavy manufacturing, commercial aviation, and maritime shipping, developers must transition from modest pilot programmes to colossal, utility-scale operations. This necessitates immense capital expenditure, the seamless integration of sprawling solar and wind power assets, and a scientific solution to the overarching transportation dilemma.

Green Ammonia and Saudi Arabia's Vision 2030

The prevailing market solution to the export challenge lies in the synthesis of green ammonia. By combining clean hydrogen with nitrogen extracted from the air, energy producers can create green ammonia, a liquid compound that is significantly easier, safer, and cheaper to store and transport internationally. Once it reaches its destination, it can be utilised directly as a low-carbon fuel or converted back into raw hydrogen.

Against this market backdrop, Saudi Arabia is actively positioning itself as a vanguard of the clean energy revolution. Historically renowned for its vast oil reserves, the Kingdom is rapidly diversifying its economy under the Vision 2030 initiative. A cornerstone of this strategy is NEOM, a futuristic mega-city designed to operate entirely on renewable energy. Within NEOM lies Oxagon, an advanced industrial hub intended to redefine clean manufacturing and establish robust new international supply chains for sustainable fuels.

A Monumental Milestone at Oxagon

Turning this ambitious green vision into reality, a formidable consortium has achieved a landmark breakthrough. The NEOM Green Hydrogen Company (NGHC)—a strategic joint venture comprising the Saudi utility giant ACWA Power, the US-based industrial gas leader Air Products, and NEOM—has officially completed the construction of its flagship $8.5 billion green hydrogen mega-project at Oxagon.

ACWA Power Chief Executive Officer Samir Serhan recently confirmed during an earnings call with analysts and investors that the monumental facility has successfully transitioned into the commissioning stage. When fully operational, the plant will stand as the world’s largest commercial-scale green hydrogen production facility, projected to produce up to 600 tonnes of carbon-free hydrogen per day. This enormous output will then be converted directly into green ammonia for export to global markets.

The physical scale of the supporting infrastructure is unprecedented. The operation requires an immense amount of green electricity, which will be supplied by an integrated network of renewable assets. In March, NGHC reported that the project’s dedicated renewable power generation infrastructure—comprising a massive solar farm, a sprawling wind garden, and a bespoke transmission grid—had already reached approximately 95 per cent completion.

Addressing the timeline and future operational targets, the company confirmed its commitment to the scheduled global rollout. As stated in an official company update: “The project remains on schedule, with up to 4 GW of combined solar and wind power generation targeted for completion by mid-2026, followed by commissioning of the electrolyzers and first green ammonia product availability planned for 2027.”

By effectively marrying massive renewable energy generation with cutting-edge electrolysis and ammonia synthesis, ACWA Power and its partners have successfully demonstrated that utility-scale green hydrogen is no longer merely a theoretical concept.

Across the Middle East, nations face the pressing challenge of maximising the economic value of natural resources while mitigating the impacts of volatile global energy markets.

For countries with substantial mineral wealth, simply extracting raw materials is no longer sufficient to sustain long-term economic development. The contemporary industrial landscape demands a transition towards value-added processing and sophisticated supply chains. Historically, in the mining and energy sectors, isolated national strategies have led to elevated operational costs and constrained industrial competitiveness.

For Jordan and Egypt, addressing these challenges requires modernising infrastructure and securing affordable, reliable energy to power their respective industrial zones. In an era where long-term energy security and rapid industrial growth are inextricably linked, the high cost of powering large-scale manufacturing remains a primary hurdle. To remain competitive on the global stage, regional players must find innovative ways to reduce energy expenditures while upgrading their capacities to process raw materials, such as raw phosphate, into high-value fertilisers and specialised chemical products.

Regional Integration as a Growth Catalyst

The solution to these industrial challenges lies in cross-border cooperation and the pooling of technical expertise. By linking energy networks, sharing advanced production technologies, and developing joint geological services, neighbouring nations can create a highly resilient economic environment. This integration allows countries to leverage complementary strengths, such as Egypt's extensive experience in natural gas distribution and Jordan's rich mineral reserves.

Furthermore, the current market dictates a pivot towards sustainable, forward-looking industries. The global push for agricultural security has heightened the demand for phosphate-based industries, including the production of phosphoric acid. Concurrently, the ongoing energy transition opens new avenues for investments in ammonia and green hydrogen production. By aligning industrial strategies, these nations can capture a larger share of expanding global markets, transitioning from raw material exporters to hubs of advanced chemical and green energy manufacturing.

A Strategic Bilateral Partnership

In a definitive move to operationalise this cooperative regional strategy, Egypt and Jordan have formally agreed to significantly deepen their strategic partnership across the energy and mining sectors. During high-level talks held in Amman on the 12th of July 2026, Egyptian Minister of Petroleum and Mineral Resources Karim Badawi and Jordanian Minister of Energy and Mineral Resources Saleh Al-Kharabsheh established a comprehensive framework for a new phase of bilateral economic integration. The discussions underscored the critical importance of translating strong diplomatic ties into actionable, on-the-ground investments.

The announcement outlines specific plans to maximise the added value of both nations' natural resources. In the mining sector, the two countries will collaborate on developing phosphate-based industries, enhancing mineral value chains, and conducting joint exploration activities. The partnership will combine technical, engineering, and managerial expertise to implement large-scale projects and eventually expand into broader regional markets.

A pivotal element of this agreement involves increasing the participation of Egyptian petroleum sector companies in Jordan's energy infrastructure. Building upon the successful track record of the Fajr Jordan Egyptian Natural Gas Transmission and Supply Company, Petrojet, ENPPI, and Gas Misr, the new initiatives will explore opportunities for enterprises like EPROM, Town Gas, and Modern Gas.

Crucially, the Jordanian government announced that it is nearing the completion of agreements with two Egyptian firms to implement natural gas distribution projects in the industrial cities of Ma'an and Al Muwaqqar. These infrastructure developments will complement ongoing gas network expansions in Mafraq and Zarqa, directly addressing the need to reduce energy costs for Jordan’s industrial sector.

Paving the Way for Future Ventures

To ensure these goals translate into tangible outcomes, Egypt and Jordan have committed to establishing joint technical working groups. These teams will develop clear implementation mechanisms for the proposed infrastructure and investment partnerships. The ministers also explored emerging opportunities in green hydrogen and ammonia production. By transforming diplomatic ties into concrete commercial projects, Jordan and Egypt are setting a compelling precedent for robust Arab economic integration and sustainable industrial advancement.

As nations accelerate their shift away from carbon-intensive power generation, the challenge lies not merely in the technological deployment of renewable infrastructure, but in the intricate financial and operational orchestration required to bring these projects to fruition.

In the Sultanate of Oman, where the commitment to sustainability is firmly rooted in the ambitious framework of Vision 2040, the transition to a greener grid is moving from conceptual planning to concrete, large-scale implementation.

For industrialised and emerging economies alike, the primary hurdle in scaling renewable energy has historically been the gap between policy goals and actionable, bankable infrastructure. Developing utility-scale wind farms requires more than just geography; it demands the alignment of government procurement, private sector investment, and technical expertise. The financial close of a major project is often the most significant milestone in this journey, signalling that a project has secured the necessary capital, risk mitigation, and contractual stability to move from the boardroom to the construction site.

Oman has been systematically laying the groundwork for this transition, aiming to increase the share of renewable energy in its national electricity mix to at least 30 per cent by 2030. This strategy serves a dual purpose: supporting the Sultanate’s Net Zero 2050 ambitions while ensuring long-term energy security through diversification. Within this market context, the ability to attract international consortiums to develop infrastructure has become a key indicator of the country’s growing appeal as a hub for sustainable investment.

This week, the Sultanate marked a significant step forward in this journey. A consortium led by EDF power solutions, Al Khadra Partners, and OQ Alternative Energy (OQAE) officially announced the successful achievement of financial close for the 120-megawatt (MW) Jaalan Bani Bu Ali (JBB) Wind Independent Power Project.

The project follows the execution of a 20-year Power Purchase Agreement (PPA) with Nama Power and Water Procurement Company (Nama PWP). Located in the South Al Sharqiyah Governorate, approximately 440 km from the Port of Duqm, the wind farm is set to become one of the country’s most prominent onshore wind energy initiatives. The facility will comprise 16 wind turbines, each boasting a generation capacity of 7.7 MW, and is expected to commence commercial operations in the third quarter of 2027.

The environmental and economic implications of the JBB Wind Project are substantial. Once operational, the farm is projected to supply renewable electricity to more than 13,500 Omani households annually while avoiding over 270,000 tonnes of CO₂ emissions each year. Beyond the environmental gains, the project is designed to bolster local economic development, creating opportunities for skills transfer, job creation, and enhanced participation for Omani businesses during both the construction and operational phases.

Reflecting on the achievement, Luc Koechlin, CEO Middle East of EDF power solutions, said: "Achieving financial close on the JBB Wind Project is a major milestone for all partners involved and demonstrates the confidence of lenders in both the project and Oman's renewable energy market."

This milestone reaffirms the viability of Oman’s renewable sector and underscores the collaborative approach required to drive the Sultanate toward its long-term decarbonisation objectives.