Saudi Arabia’s NEOM Green Hydrogen Company (NGHC) has signed financial documents with 23 local, regional and international banks and investment firms, leading to the financial close on the world’s largest green hydrogen production facility at a total investment value of $8.4bn.
The company also announced that it has concluded an engineering, procurement and construction (EPC) agreement with Air Products worth $6.7bn.
Additionally, NGHC has secured an exclusive 30 year off-take agreement with the industrial gas giant for all the green ammonia produced at the facility.
A joint venture between ACWA Power, Air Products and NEOM, NGHC’s mega-plant – currently being built in Oxagon, Saudi Arabia – will integrate up to 4GW (gigawatts) 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.
Calling the financial close a ‘massive leap’ towards opening the plant, Nadhmi Al-Nasr, Chairman of NGHC and CEO at NEOM, said, “At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution.”
“Harnessing the energy of NEOM’s abundant 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.”
According to NGHC, its financial agreements were concluded through a diverse mix of local, regional and international banks and financial institutions, along with an Euler Hermes tranche with 23 institutions investing in the project.
Commenting on the project, David R. Edmondson, CEO of NGHC, said, “This is an historic moment as we drive large-scale adoption of green hydrogen as the clean solution to the world’s growing energy demands”
“This has enabled us to also conclude the EPC agreements with Air Products for a value of $6.7bn. Today, we are already underway building the world’s largest facility to produce green hydrogen at scale with production scheduled to begin by the end of 2026.”
By off-taking the green ammonia, Air Products aims to support decarbonisation of heavy-duty transportation and industrial sectors, potentially saving the world around five million tonnes of carbon dioxide (CO2) per year.