Saudi Arabia invests in large-scale battery storage and green hydrogen

Saudi Arabia is advancing its renewable energy infrastructure through major investments in battery storage and green hydrogen. The Saudi Power Procurement Co. has signed agreements for four battery energy storage projects valued at approximately $1.16 billion. These projects, totaling 2,000 megawatts of capacity with four hours of storage each, aim to improve power system reliability and facilitate the integration of renewable energy into the national grid.

Three of these storage projects will be located in the Makkah and Hail regions, awarded to a consortium including Saudi Energy Co., Acwa, and Al Sharif Contracting and Commercial Development Co. A fourth 500 MW facility in the Qassim region was awarded to a consortium including France’s Engie and Haji.

In parallel, the $8.4 billion NEOM Green Hydrogen Project has entered the commissioning phase. This facility, which utilizes solar and wind power, is expected to begin commercial production in 2027. Once operational, it aims to produce approximately 1.32 million tons of green ammonia annually for export, utilizing 2.2 gigawatts of electrolyzers to support heavy industries and reduce carbon emissions.