Saudi-based NEOM Green Hydrogen Co. has signed finance agreements with several financial institutions totaling $8.5 billion, Arab News reports, to finance its clean energy facility.
The NEOM Green Hydrogen Project includes the development, financing, design, engineering, procurement, manufacturing, and factory testing of a world scale green hydrogen and green ammonia plant. The information was published by Arab News based on a filing with the Saudi stock market.
NEOM’s Green Hydrogen Company (NGHC), an equal joint venture created by ACWA Power, Air Products, and NEOM, will create the world’s largest green hydrogen plant.
Under a 30-year green ammonia offtake contract with Air Products, the project will also comprise transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of the facility, Arab News said.
The financing for the world’s largest green hydrogen production facility located in NEOM is structured with significant participation from SIDF and the National Infrastructure Fund (NIF).
NGHC’s mega-plant will “integrate up to 4GW of solar and wind energy to produce up to 1.2 million tonnes of green-ammonia translating to up to 600 tonnes per day of carbon-free hydrogen. Once the plant at NEOM is operational by 2026, 100% of the green hydrogen produced will be available for global export, in the form of ammonia, through an exclusive long-term agreement with Air Products,” the company said in a press release available on its website.
“NGHC have a clear mission; to leverage the expertise and vision of its partners to accelerate the global green hydrogen economy,” David R. Edmondson, Chief Executive Officer NEOM Green Hydrogen Company (NGHC), said. “This is fully in line with Vision 2030 and the goals of the Saudi Green Initiative. The recent convening of the investment community in Riyadh is an important step towards the milestone of achieving financial close in early 2023, to deliver the world’s largest facility to produce green hydrogen at scale. We are grateful for the significant support from our shareholders and the investment community to making that happen.”
