$5bn green hydrogren-based ammonia production facility to be built in NEOM

Air Products, Acwa Power and NEOM have signed an agreement to create facility which will produce green ammonia for export to global markets

Air Products, Acwa Power and NEOM have signed an agreement to develop a $5bn green hydrogen-based ammonia production facility powered by renewable energy in Saudi Arabia. The project will take shape in NEOM and will be equally owned by the three partners.

The joint venture project is said to be the first partnership for NEOM with international and national partners in the renewable energy field, and will be a cornerstone for its strategy to become a major player in the global hydrogen market, the statement said.

The facility will leverage proven technology and is said to include the integration of over four gigawatts of renewable power from solar, wind and storage. The facility will generate 650 tons per day of hydrogen by electrolysis using Thyssenkrupp technology, produce nitrogen by air separation using Air Products technology, as well as create 1.2m tons per year of green ammonia using Haldor Topsoe technology. The project is scheduled to be onstream in 2025, the statement said.

“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. 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 tons of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars,” said Seifi Ghasemi, chairman, president and CEO of Air Products.

Air Products will be the exclusive off-taker of green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

Mohammad A Abunayyan, Acwa Power chairman added, “Stemming from our belief in Vision 2030 and HRH Crown Prince Mohammed bin Salman’s aspirations for NEOM to become the global pioneer in sustainable living, the Board of Directors and management of Acwa Power are proud to take part in this groundbreaking and first-of-its-kind investment in the world. With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits. Based in NEOM’s Industrial Cluster, and enabled by its unique mandate, this investment will integrate and localise cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.”

NEOM CEO Nadhmi Al Nasr remarked, “This partnership reflects our deep commitment to developing a carbon positive society which will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world. This demonstrates the ability of NEOM to generate significant partnership opportunities for international and national investors. This is a pivotal moment for the development of NEOM and a key element in Saudi Vision 2030 contributing to the Kingdom’s clean energy and circular carbon economy strategy. As the world’s largest renewable hydrogen project, NEOM’s Board of Directors, headed by HRH Crown Prince Mohammed bin Salman, and the company’s executive team are delighted to announce this significant milestone for NEOM in becoming a global leader in green hydrogen production and green fuels. We are also excited that two world-class organisations, Air Products and Acwa Power, have joined us in developing this major project, the first of many developments at this scale that will put NEOM at the heart of a new future society.”

0 0 vote
Article Rating


Most Popular

To Top