2023-05-22 11:21:00
The green NEOM hydrogen logo
Neum
NEOM Green Hydrogen is an equal partnership to implement a joint venture between ACWA Power, Air Products and NEOM
Today, Monday, the NEOM Green Hydrogen Company announced the completion of the financial closure phase of the project to establish the largest green hydrogen production plant in the world, with a total investment of $8.4 billion, following signing financial documents with 23 local, regional and international banks and investment companies.
The factory is being built in the city of “Oxagon” within the “Neum” region in Saudi Arabia. The company also entered into an engineering, procurement and construction (EPC) agreement with Air Products, as the contracting company responsible for carrying out these works and ensuring system integration at the plant level in general.
The NEOM Green Hydrogen Company also announced the approval of S&P Global for credit ratings, as an independent second party that provides an objective opinion on the financing structure without the right of recourse, confirming the commitment of this project to the terms of green loans, noting that this financing is the largest of its kind within the framework of Green financing.
Air Products, in turn, awarded major contracts to a number of technology and construction partners.
In addition, NEOM Green Hydrogen has entered into an exclusive 30-year agreement with Air Products, which will purchase all the green ammonia produced by the plant, in a move aimed at seizing economic opportunities associated with renewable energy at various stages of the value chain.
The massive hydrogen plant of the NEOM Green Hydrogen Company, which is an equal partnership to implement a joint venture between ACWA Power, Air Products and NEOM, will produce up to 4 gigawatts of solar and wind energy, which in turn will be used to produce up to To 600 metric tons 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.
For his part, the Chairman of the Board of Directors of NEOM Green Hydrogen Company, CEO of NEOM, Eng. Nazmi Al-Nasr, said that the project is the first of its kind in the world to produce hydrogen on a large scale, and comes as part of a step towards leading global efforts aimed at shifting towards hydrogen as a source of renewable energy. With the announcement of the financial closure phase of this project, the pace of work being carried out on the ground to translate ambition into reality will significantly accelerate.”
For his part, CEO of the NEOM Green Hydrogen Company, David Edmundson, said: The NEOM Green Hydrogen Company, in cooperation with its three partners “Aqua Power”, “Air Products” and “NEOM”, achieved an additional achievement at the level of our project, following we reached the stage of closure. The financial institution of the largest green hydrogen production plant in the world with 23 banks and investment companies.
He continued, “This allowed us to conclude engineering, procurement and construction agreements with Air Products worth $6.7 billion. Today, we are working at an accelerated pace to build the largest plant in the world to produce green hydrogen on a large scale, knowing that production operations are scheduled to start at the end of the year.” year 2026″.
He added, “We are very pleased to receive such remarkable support and commitment from the company’s shareholders and investment entities, to successfully finance our project on this scale. We look forward to leading the global endeavors aimed at transitioning towards a carbon-neutral future.”
It is noteworthy that the NEOM Green Hydrogen Company has succeeded in concluding financing agreements with a variety of local, regional and international banks and investment companies, in addition to a tranche of financing from Euler Hermes, noting that no less than 23 financing parties have invested in this project. Located in the city of “Oxagon” within the “Neum” region in the Kingdom.
In January 2023, the Ministry of Industry and Mineral Resources in Saudi Arabia granted the first industrial operating license to NEOM for green hydrogen, in a step that contributes to paving the way for the Kingdom’s leadership in green hydrogen production efforts in the world, in light of the consolidation of its position as a leading country in the global energy sector.
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