NEOM Green Hydrogen Company (NGHC), a collaboration between ACWA Power, Air Products, and NEOM, has achieved financial closure on a groundbreaking green hydrogen plant in Saudi Arabia, with a staggering investment of $8.4 billion. This project is hailed as the world's largest carbon-free green hydrogen facility and is expected to produce up to 600 tonnes of hydrogen per day by the end of 2026.
The plant will be powered by a combination of solar and wind energy, with a total capacity of up to 4 gigawatts (GW). This renewable energy will be utilized to generate green hydrogen, which will subsequently be used in the production of green ammonia.
Situated in the Oxagon region of northwest Saudi Arabia, where the ambitious NEOM city project is being developed, the plant has secured the engineering, procurement, and construction (EPC) contract with Air Products for an impressive $6.7 billion. Air Products has also entered into a 30-year offtake agreement with NGHC, ensuring its exclusive access to all the green ammonia produced by the facility.
Seifi Ghasemi, the Chairman, President, and CEO of Air Products, expressed his pride in the project's progress, highlighting that major subcontracts have been awarded, land preparation is complete, and construction is well underway. Ghasemi emphasized their commitment to delivering green energy to the world by the project's completion in 2026.
This announcement follows ACWA Power's recent agreement with Badeel, the water and electric holding company of the Saudi Arabian Public Investment Fund (PIF), to develop three solar photovoltaic (PV) projects in Saudi Arabia, boasting a combined capacity of 4.5 GW.
The green hydrogen plant project has successfully secured over $8.4 billion in investments, including a remarkable $6.1 billion in non-recourse financing from 23 local, regional, and international banks and financial institutions. This significant financial backing underlines the growing interest and confidence in renewable energy ventures, as well as the potential for green hydrogen as a key component of a sustainable future.
