Contractor selected for Saudi Arabia’s NEOM hydrogen project

2 Jun 2022
Contractor selected for Saudi Arabia’s NEOM hydrogen project

Saudi Arabia’s NEOM Green Hydrogen Company has selected India’s Larsen & Toubro as the engineering, procurement and construction (EPC) contractor for solar and wind plants to power the planned $5bn green hydrogen-based ammonia plant at the NEOM development

Saudi Arabia’s NEOM Green Hydrogen Company has selected India’s Larsen & Toubro as the engineering, procurement and construction (EPC) contractor for solar and wind plants to power the planned $5bn green hydrogen-based ammonia plant at the NEOM development.

According to a report in MEED, L&T saw off competition from Energy China and Power China to be selected for the package.

The contract will involve the construction of 2,930MW of photovoltaic (PV) solar capacity, a 1,370MW wind power farm and a 400MW battery energy storage system.

The EPC package will also involve the construction of a 190km transmission line network.

Financial close for the planned $5bn green hydrogen and ammonia project to be developed at NEOM on the Red Sea Coast in Saudi Arabia is expected by the end of the first half of 2022.

Energy & Utilities reported in April that a consortium of Saudi Arabia’s Acwa Power and US-based Air Products had signed the $900m engineering, procurement and construction (EPC) contract for the planned green hydrogen and green ammonia project at Neom.

According to sources close to the project, NEOM Green Hydrogen, the special purpose vehicle (SPV) established to develop the plant, has selected a contractor to develop the 4GW of combined solar and wind plants to power the project. The contractor for the solar and wind projects is due to be revealed in May.

Air Products and Acwa Power signed initial agreements for the $5bn hydrogen-based ammonia plant in June 2020.

Air Products will be the offtaker for the produced green ammonia, and will invest a further $2bn in distribution. The project will have a production capacity of 1.2 million tonnes a year of green ammonia.

Acwa Power and Air Products each hold a 33.3 per cent stake in the Neom Green Hydrogen Company, with Neom Company holding 33.4 per cent.

Electrolysers with a capacity of 2GW will be supplied by Thyssenkrupp Unde Chrlorine Engineers, a joint venture between Germany’s Thyssenkrupp and Italy’s Industrie De Nora.

 

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