Japan’s Hitachi Energy has signed agreements with Saudi Arabia’s electric utility company ENOWA and the Saudi Electricity Company (SEC) to develop the first phase of the transmission system for Saudi Arabia’s Oxagon future smart city project located in Neom, near the city of Sharma in north-western Saudi Arabia. The agreements include the supply of three 3 GW high-voltage direct current (HVDC) transmission systems, which will have a total capacity of up to 9 GW.
The agreements notably include an order from SEC awarded to Hitachi Energy to provide a 3 GW, 525 kV HVDC Light transmission system connecting Oxagon with the larger Yanbu area more than 650 km away in Western Saudi Arabia. Hitachi Energy and ENOWA have also signed an early works and capacity reservation agreement for two additional HVDC projects, each with a capacity of up to 3 GW.
In addition, China’s Envision Energy has been selected to supply 1.67 GW of wind turbine capacity for a large-scale green hydrogen production facility project, which will be located in Oxagon. Under the contract with NEOM Green Hydrogen Company (NGHC, an equal joint venture between Saudi Arabia’s ACWA Power, Air Products and NEOM), Envision will install more than 250 wind turbines with a capacity of 6.5 MW, which are expected to be fully operational by 2026.
In late May 2023, NGHC reached financial close on the US$8.4bn Oxagon green hydrogen production facility project. The facility will integrate up to 4 GW of solar and wind capacity to produce up to 600 t/day (219 kt/year) of carbon-free hydrogen by the end of 2026, in the form of green-ammonia meant for the global transport and industrial sectors.
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