A Green Milestone For NEOM And The World
The world is witnessing a historic moment in the quest for clean energy and sustainable development. NEOM Green Hydrogen Company (NGHG), an equal joint venture by ACWA Power, Air Products and NEOM, has completed financial close at a total investment value of USD 8.4 billion in the world’s largest carbon-free green hydrogen plant. This project, located at Oxagon, in Saudi Arabia’s region of NEOM, will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen by the end 2026. The hydrogen will be converted into green ammonia, which can be easily transported and used as fuel for various sectors globally.
This is a remarkable achievement for NGHC, which was established in August 2021 and has secured USD 6.1 billion in non-recourse financing from 23 local, regional, and international banks and financial institutions. The project has also been certified by S&P Global as adhering to green loan principles, making it one of the largest project financings under the green loan framework. Moreover, NGHC has concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility. Air Products has already awarded major contracts to various technology and construction partners.
The project has also secured an exclusive 30-year off–take agreement with Air Products for all the green ammonia produced at the facility. This will unlock the economic potential of renewable energy across the entire value chain. Green ammonia can be used as a zero-emission fuel for transportation, power generation, industry, and agriculture. It can also be converted back into green hydrogen to fuel the hydrogen mobility market. For example, NGHC’s green hydrogen will fuel clean, autonomous electric vehicles in NEOM to ensure a sustainable environment.
The project is not only a game-changer for NEOM, but also for Saudi Arabia and the world. It aligns with Saudi Vision 2030’s goals of diversifying the economy, enhancing environmental quality, and creating jobs. It also supports the global and creating jobs. It also supports global efforts to combat climate change and reduce greenhouse gas emissions. According to NGHC’s Chairman and NEOM’s CEO Nadhmi Al-Nasr, “At scale, this project is the first of its king internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM’s abundant natural resources, NGHC’s project will pave the way for the large-scale adoption of green hydrogen, while driving Saudi Vision 2030’s sustainable development goals.
NGHC’s project is a testament to the power of collaboration and innovation. It demonstrates how visionary partners can come together to create a world-class facility that will produce green energy at an unprecedented scale and cost. It also shows how NEOM is leading the way in creating a new model of living that is based on renewable solutions and a circular economy. As NGHC’s CEO David Edmondson said, “We aim to revolutionize the global energy market and create a circular economy as we redefine the parameters of sustainable living and abundant resource production, all in harmony with nature”.