Financial close nears for NEOM green hydrogen project

9 May 2022
Financial close nears for NEOM green hydrogen project

EPC contractor for the 4GW renewable energy capacity is due to be confirmed soon

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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