Hyzon Motors, NEOM and Modern Group to collaborate on development of assembly facility for hydrogen-powered vehicles; up to 10,000 pa
Hyzon Motors, a supplier of hydrogen-fuel-cell-powered commercial vehicles, jointly with Modern Industrial Investment Holding Group (“Modern Group”), a Saudi industrial conglomerate, announced the signing of a memorandum of understanding (MoU) with NEOM Company on a hydrogen vehicle value chain, including a demonstration fleet and assembly facility with annual capacity of up to 10,000 vehicles. NEOM is a $500-billion giga-project in northwest Saudi Arabia on the Red Sea.
Following this announcement, Hyzon expects to have its zero-emission hydrogen-powered vehicles/operations on four continents this year.
NEOM is committed to becoming fully sustainable, powering itself through the use of 100% renewable energy and with net zero emissions by 2030. A green hydrogen ecosystem will play a role both for the export of renewable energy and for net-zero carbon technologies for power and transportation in NEOM.
Various global corporations have already committed to invest more than $5 billion to produce green hydrogen in NEOM in the world’s largest hydrogen production plant. It is expected NEOM will become an area with one of the highest concentrations of green hydrogen production and investment in the world.
Hyzon aims to be at the forefront of providing heavy-duty commercial fleet vehicles into NEOM which would act as a showcase to the wider Kingdom and beyond.
Hyzon, Modern Group and NEOM Company plan to work closely over the next 18 months to finalize plans and specifications for the new regional assembly facility, with an anticipated annual capacity to assemble up to 10,000 vehicles.
To facilitate construction of the new facility, Hyzon and Modern Group plan to incorporate a joint venture company, Hyzon Motors Middle East (ME), which would focus on supplying locally-built, Hyzon-branded zero-emission commercial vehicles throughout Saudi Arabia and the GCC.
NEOM is part of the diversified portfolio of Saudi Arabia’s Public Investment Fund, one of the largest sovereign wealth funds in the world.
The MoU sets out the current aims of the parties with respect to the assembly facility and vehicle delivery, but such aims will not constitute binding obligations on any party thereto until definitive agreements are executed.