$8.4bn NEOM Green Hydrogen project achieves financial close

Producing 600 tonnes of carbon-free hydrogen per day, facility will integrate solar and wind energy

The NEOM Green Hydrogen Company (NGHC) has announced that following the signing of financial deals with 23 local, regional, and international banks and investment firms, it has achieved financial close on the world’s largest green hydrogen production facility, with a total investment value of US $8.4bn. The plant is currently being built at Oxagon, in NEOM, Saudi Arabia.

NGHC said it 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, NGHC also announced that the non-recourse financing structured 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 financing deals put in place under the green loan framework.

Air Products has already awarded major contracts to various technology and construction partners, said a statement.

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 will unlock the economic potential of renewable energy across the entire value chain.

An equal joint venture between ACWA Power, Air Products and NEOM, NGHC’s plant will integrate up to 4GW of solar and wind energy to produce up to 600t per day of carbon-free hydrogen by the end of 2026, in the form of green ammonia. Carbon-free hydrogen is a cost-effective solution for the transportation and industrial sectors globally.

Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Company, and Chief Executive Officer, NEOM stated, “This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. With the financial close announced today, we are taking a massive leap towards opening the plant, in line with NEOM’s vision to accelerate renewable solutions. 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 natural 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.”

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