NEOM Green Hydrogen Company (NGHC) announced today that it has entered into a financing agreement with 23 local, regional and international banks and investment firms, enabling the completion of the world’s largest green hydrogen production facility with a total value of $8.4 billion. This plant is currently under construction in Oxagon, in the NEOM region of Saudi Arabia. NGHC is a joint venture between ACWA Power, Air Products and NEOM to produce green ammonia on a large scale.
The engineering, procurement and construction (EPC) agreement has also been signed with Air Products, which will be the contractor and designated system integrator for the entire facility. This phase of the project represents an investment of $6.7 billion. Certification of the project’s non-recourse financing structure was granted by S&P Global, which confirmed that it complied with green lending principles. It is also one of the largest project financings under the green lending principles.
Air Products has already awarded major contracts to various technology and construction partners. In turn, NEOM Green Hydrogen Company has entered into an exclusive 30-year purchase agreement with Air Products for all green ammonia produced at the facility. This will unlock the economic potential of renewable energy across the value chain.
600 tons of carbon-free hydrogen per day
The NGHC mega-plant, which is a joint venture between ACWA Power, Air Products and NEOM, will integrate up to 4 GW of solar and wind power to produce up to 600 tons per day of carbon-free hydrogen by the end of 2026 in the form of green ammonia. This cost-effective solution will be targeted at the transportation and industrial sectors worldwide.
NGHC’s financial arrangements have been made with a variety of local, regional and international banks and financial institutions. In addition, an Euler Hermes tranche has been set up with no less than 23 institutions investing in the project located in Oxagon, in the NEOM region of Saudi Arabia.
In January 2023, Saudi Arabia’s Ministry of Industry and Mineral Resources had issued NGHC its first industrial operating license, paving the way for the Kingdom to become the world’s leading hydrogen producer, while maintaining its position as a key player in the energy sector.
