Saturday, June 3, 2023

Saudi’s NEOM Announces $8.6 Billion for World’s Largest Carbon-Free Green Hydrogen Plant

NEOM, Saudi Arabia, has secured a staggering $8.4 billion in financing for the world’s largest carbon free green hydrogen plant. The NEOM Green Hydrogen Company (NGHC) has signed financial agreements with 23 banks, investment firms, and institutions. Moreover, The facility is being constructed in Oxagon, located within NEOM’s region, and holds immense promise for advancing renewable solutions on a global scale.

NGHC has also finalized the engineering, procurement, and construction (EPC) agreement with Air Products, a leading contractor and system integrator for the entire facility. To further underline the project’s commitment to sustainability, S&P Global, a respected financial ratings agency, has certified the non recourse financing structure of the project. It ensures its adherence to green loan principles.

World’s Largest Carbon-Free Green Hydrogen Facility

In addition to this, NGHC has secured an exclusive 30 year off-take agreement with Air Products. It encompasses all green ammonia produced at the facility. By integrating up to 4GW of solar and wind energy, the plant aims to produce 600 tons per day of carbon free hydrogen by the end of 2026. This hydrogen will be converted into green ammonia. And it will provide a cost effective solution for the transportation and industrial sectors worldwide.

Joint Venture between ACWA and NEOM

NGHC, a joint venture between ACWA Power, Air Products, and NEOM, embodies the collective ambition and shared vision of its partners. Furthermore, this initiative aligns with NEOM’s commitment to accelerating renewable solutions and Saudi Vision 2030’s sustainable development goals. Nadhmi Al-Nasr is Chairman of NEOM Green Hydrogen Company and CEO of NEOM. Furthermore, he expressed his excitement about the substantial financial backing received. Moreover, he underscored the project’s unmatched potential in spearheading the global hydrogen revolution.

NGHC CEO highlights green hydrogen’s historic significance as the clean energy solution for global energy needs. $6.7billion EPC agreements with Air Products propel construction of world’s largest green hydrogen facility, targeting 2026 production. Edmondson expressed gratitude to shareholders and the investment community for their unwavering support. As this achievement propels the world towards a carbon-free future.

NGHC’s financial agreements were made possible through collaboration with a diverse mix of international banks and financial institutions. The involvement of 23 institutions, including an Euler Hermes tranche, highlights the widespread investment interest in the Oxagon project. Moreover, the recent award of NEOM’s first industrial operating license by Saudi Arabia’s Ministry of Industry and Mineral Resources further solidifies the Kingdom’s position as a global hydrogen producer, while maintaining its role as a key player in the energy sector.

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