A $5bn world-scale green hydrogen-based ammonia production facility powered by renewable energy will be constructed in Saudi Arabia.

Announcing the news today, Air Products said it has signed an agreement with ACWA Power and NEOM for the plant, which will be equally owned by the three partners, and supply 650 tonnes per day of green hydrogen, via electrolysis using thyssenkrupp technology, for transportation globally.

Air separation technology from Air Products will produce nitrogen and 1.2 million tonnes per year of green ammonia will be produced using Haldor Topsoe technology.

Scheduled to be onstream in 2025, Air Products said it will be the exclusive offtaker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

“We are honoured and proud to partner with ACWA Power and NEOM and use proven technologies to make the world’s dream of 100% green energy a reality,” said Seifi Ghasemi, Chairman, President and CEO of Air Products.

“Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tonnes of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.”