NEOM Green Hydrogen Company has reached a historic milestone by securing financial close on the world’s largest green hydrogen production plant. This is a pioneering project costing USD 8.4 billion and involves a joint investment between NEOM, Air Products, and ACWA Power. The new production plant will harness 4GW of carbon-neutral energy generated by solar and wind sources to produce 600 tons of green hydrogen a day by late 2026.
NEOM project gains huge international financial support
The project has successfully achieved financial close after entering into agreements with 23 banks and investment companies covering various continents. This is due to the unique structuring of finances, which amounts to USD 6.1 billion of non-recourse finance, classed among the biggest project financings under the green loan structure worldwide. The project’s green credentials were proven by certification provided by S&P Global, which assured the project strictly complies with the principles of a green loan.
The construction is currently 80% complete on all components of the project, such as the green hydrogen production plant, the wind garden, solar farm, and transmission grid systems. Key milestone equipment has also been installed, including wind turbines, hydrogen tanks, electrolyser packages, and pipe racks. The 4GW solar and wind energy generation project is to be completed by mid-2026, along with the commissioning and testing of the electrolyser packages.
Engineering procurement construction agreements finalized with Air Products
NEOM Green Hydrogen Company has signed comprehensive engineering, procurement, and construction agreements with Air Products, which amount to a total of USD 6.7 billion. Air Products is working as the nominated contractor and system integrator for the entire plant, and it has expert knowledge regarding the technology of hydrogen production and the management of industrial-scale projects.
Groundbreaking technology focuses on decarbonization worldwide
The plant shall enable the production of up to 1.2 million tonnes of green ammonia each year by leveraging the latest electrolysis technology developed by thyssenkrupp and the nitrogen production technology developed by Air Products. This pioneering solution integrates renewable power production and the latest hydrogen production techniques into a carbon-zero production process. The new solution shall offset 5 million metric tonnes of carbon emissions annually.
In another deal, Air Products has obtained an exclusive 30-year off-take contract covering the entire output of green ammonia produced by the new facility. The exclusivity of the contract is expected to assure demand for the produced green ammonia. Meanwhile, the new technology and facilities constructed by Air Products are set to unlock the value chain of the entire sector.
“This strong financial support from the investment community is a testament to the unparalleled potential of the green hydrogen project by NGHC,” said Nadhmi Al-Nasr, Chairman of NEOM Green Hydrogen Company and CEO of NEOM.
Commercial operations timeline speeds up towards 2026 launch
NEOM Green Hydrogen is an important milestone towards the commercialization of hydrogen technology. The land preparation and awarding of significant subcontracts to technology and construction partners worldwide are currently under active execution. The success of the project is set to catapult the status of Saudi Arabia to a flagship player in the global community of hydrogen producers and further serve the sustainable developmental vision of ‘Vision 2030’.
The first commercial products are projected to emerge in 2027, marking the start of commercial-scale green hydrogen production, and they are set to cater to the transportation and industry sectors worldwide. Completing the facility will prove the feasibility of commercial-scale renewable hydrogen and set new standards for future facilities.
NEOM Green Hydrogen is a true example of global cooperation in dealing with the issue of climate change by using cutting-edge, sustainable energy technology. This revolutionary scheme will completely turn around the global hydrogen industry and prove the commitment of Saudi Arabia to becoming a global leader in sustainable energy sources.
