Saudi Arabia Closes Record US$8.4 Billion For World’s Largest Green Hydrogen Project

2 minute(s) Read

June 7, 2023

ESG Review Staff

Rendering Of NEOM Green Hydrogen Plant (Image Courtesy Of Image Courtesy Of NGHC)

NEOM Green Hydrogen Company (NGHC) announced that following signing financial documents with 23 local, regional, and international banks, and investment firms, it has now achieved financial close on the world’s largest green hydrogen production facility at a total investment value of US$8.4 billion. The plant is currently being built at Oxagon, in Saudi Arabia’s region of NEOM. NGHC has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility.

NEOM Green Hydrogen Company Financial Close (Image Courtesy Of NGHC)

NGHC also announced that the non-recourse financing structured for the project has been certified by S&P Global (as the second-party opinion provider) as adhering to green loan principles and is one of the largest project financings put in place under the green loan framework. Air Products has already awarded major contracts to various technology and construction partners.

NGHC also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which will unlock the economic potential of renewable energy across the entire value chain.

NEOM Green Hydrogen Company Fueling A Carbon Free Future (Image Courtesy Of NGHC)

An equal joint venture between ACWA Power, Air Products and NEOM, NGHC’s mega-plant will integrate up to 4 GW of solar and wind energy to produce up to 661 tons (600 tonnes) per day of carbon-free hydrogen by the end of 2026, in the form of green-ammonia as a cost-effective solution for the transportation and industrial sectors globally.

NEOM Green Hydrogen Company — Saudi Arabian Project With Global Significance (Image Courtesy Of NGHC)

“Air Products is proud to be shaping the future of energy with first-mover projects like this one, providing clean hydrogen to the world in a sustainable way,” said Seifi Ghasemi, chair, president, and CEO of Air Products. “Air Products is the exclusive off-taker and will absorb the full production volume of the green hydrogen produced in the form of green ammonia at the NGHC facility to serve global mobility and industrial markets. Producing and exporting green ammonia supports the decarbonization of these heavy-duty transportation and industrial sectors and will save the world about 5.51 million tons [5 million tonnes] of carbon dioxide per year. As the primary EPC contractor and system integrator for the facility, we are proud of the significant progress made with engineering and have awarded all major subcontracts for the project. Land preparation is also complete, construction is well underway, and the joint venture team is in place and actively executing to bring green energy to the world by the end of 2026.”