NEOM Green Hydrogen Company (NGHC), a joint venture created by ACWA Power, Air Products and NEOM, has achieved financial close on the mega green hydrogen production facility in Saudi Arabia at a total investment value of $8.4 billion.
The financial close was reached following the signing of financial documents with 23 local, regional and international banks and investment firms.
The plant, set to be the world’s largest, is being built at Oxagon, in Saudi Arabia’s region of NEOM. It 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 of 2026, in the form of green ammonia as a cost-effective solution for the transportation and industrial sectors globally.
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.
Additionally, the company announced that the non-recourse financing structure 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, such as Indian Larsen & Toubro (L&T) .
Moreover, NEOM Green Hydrogen Company also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which is expected to unlock the economic potential of renewable energy across the entire value chain.
In January 2023, Saudi Arabia’s Ministry of Industry and Mineral Resources awarded its first industrial operating license to NGHC, paving the way for the Kingdom to become the world’s leading hydrogen producer, while maintaining its position as a key player in the energy sector.