NEOM Green Hydrogen Company, which is building the world’s biggest green hydrogen plant in Saudi Arabia, on Monday said it had reached the financial close on the world’s largest green hydrogen production facility, which will need total investments of $8.4 billion.
The project at a total value of $8.4 billion is being financed with $6.1 billion non-recourse financing from 23 local, regional, and international banks and financial institutions, NEOM Green Hydrogen Company said in a statement today.
NEOM Green Hydrogen Company (NGHC) is an equal joint venture by ACWA Power, Air Products, and NEOM. The company plans to build the world’s largest green hydrogen plant to produce green ammonia at scale in 2026.
The plant is currently being built at Oxagon, in Saudi Arabia’s region of NEOM, the planned smart city of the Kingdom.
NGHC has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility, the joint venture company said on Monday. Air Products, in turn, has already awarded major contracts to various technology and construction partners.
NGHC’s non-recourse financing structure for the project has been certified by S&P Global (as the second-party opinion provider) as adhering to the green loan principles.
The hydrogen mega-plant will integrate up to 4 gigawatts (GW) of solar and wind energy to produce up to 600 tons per day of carbon-free hydrogen by the end of 2026, in the form of green ammonia.
Earlier this year, ACWA Power, one of the green hydrogen facility’s developers, said that it plans to build three more giant green hydrogen projects in Saudi Arabia.
The two other plants could be adjacent to the NEOM hydrogen project, and the company is also looking at another site for a third such plant,
ACWA Power’s chief executive Paddy Padmanathan told Bloomberg in March.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.