Financial Agreements Signed to Fund World's Largest Green Hydrogen Project in Neom

Dec 20, 2022 11:06 AM ET
  • The quantum of funds committed by the lenders with the Saudi Government stand at $5 billion.
  • The project envisages the production of up to 600 tons of green hydrogen each day that can further be used to create 1.2 million tons of green ammonia by 2026.

Neom Green Hydrogen Company (NGHC) has actually signed multiple economic facility agreements with regional, regional as well as global banks and also banks to support the construction of the world's biggest green hydrogen manufacturing plant in Neom, the sustainable city project in Saudi Arabia. The quantum of funds committed by the lenders with Saudi Industrial Development Fund (SIDF) stand at $5 billion.

NGHC is yet to disclose the financing in concrete terms but it stated that the National Infrastructure Fund (NIF) will also have substantial engagement in the hydrogen project.

The entire project envisages the generation of 4GW of renewable resource that will certainly be utilized for the manufacturing of up to 600 tons of green hydrogen daily that might further be employed for the production of 1.2 million tons of green ammonia by 2026.

The entire project is being created by a joint venture (JV) in between Air Products, Saudi Arabia's ACWA Power and the City of Neom. Germany based ThyssenKrupp will supply an electrolysis plant to the Neom project.

US based gas as well as chemical firm Air Products has signed a long-term agreement with the developers under which the company will certainly export the green fuels as ammonia.

David R. Edmondson, Ceo, NEOM Green Hydrogen Company (NGHC), stated, "NGHC have a clear mission; to leverage the know-how as well as vision of its partners to speed up the worldwide green hydrogen economy. This is totally in line with Vision 2030 and also the goals of the Saudi Green Initiative."

He added, "The current convening of the investment community in Riyadh is an important step towards the milestone of attaining monetary close in early 2023, to provide the world's biggest facility to create green hydrogen at scale. We are grateful for the substantial assistance from our shareholders and the investment community to making that happen."

The Kingdom of Saudi Arabia has an ambitious project to create a new green and sustainable city in Tabuk province that would remain on the coastline of the Red Sea-- Neom. The strategic area on one of the busiest global routes is anticipated to create a beneficial environment for the fast development of the Neom. The city will certainly be powered by 15 GW renewable resource capacity by the end of this decade.

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