NEOM completes financial close of carbon-free green hydrogen plant

Securing $8.4 bn for plant currently being built at Oxagon, having concluded EPC and exclusive 30-year off-take agreement with Air Products; targeting 600 tonnes/day carbon-free H2 by end ‘26

NEOM Green Hydrogen Company (NGHC) announced late last month it reached financial close on the world’s largest green hydrogen production facility.

After signing financial agreements with 23 local, regional, and international banks and investment firms, NGHC secured a total investment value of $8.4bn. 

The plant is currently being built at Oxagon, in Saudi Arabia’s region of NEOM. NGHC has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility.

Air Products has already awarded major contracts to various technology and construction partners.

NEOM Green Hydrogen Company also secured an exclusive 30-year off-take agreement with Air Products for all green ammonia produced at the facility.

An equal joint venture between ACWA Power, Air Products and NEOM, NGHC’s mega-plant will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen by the end of 2026, in the form of green-ammonia as a cost-effective solution for the transportation and industrial sectors globally, according to a statement from NGHC.

“This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project,” said Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Company, and Chief Executive Officer, NEOM.

“With the financial close, we are taking a massive leap towards opening the plant, in line with NEOM’s vision to accelerate renewable solutions,” he added.

“At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution,” said David R. Edmondson, Chief Executive Officer of NGHC.

“Air Products is proud to be shaping the future of energy with first-mover projects like this one, providing clean hydrogen to the world in a sustainable way,” said Seifi Ghasemi, Chairman, President and Chief Executive Officer, Air Products.

“Air Products is the exclusive off-taker and will absorb the full production volume of the green hydrogen produced in the form of green ammonia at the NGHC facility to serve global mobility and industrial markets,” he added.

Top tier actors

“The completion of the financial close for NEOM project represents a very important and positive message to the market,” says Salah Mahdy, Global Director of Hydrogen at Chart Industries, a member of the World Hydrogen Council.

“The successful implementation of such a large-scale green hydrogen plant in Saudi Arabia can inspire other countries and companies to invest in this technology, accelerating the global transition,” he adds.

“This will be a major cornerstone in the next Power to X era,” says Dr Mouloud Bakli, who is founder of CleanPowerEngineering, a UAE-based company with investment in green hydrogen.

“NEOM  is a huge project by the size of investments engaged with highly credible actors as partners,” he says.

“I do think it will face challenges on off-take,”

“I wish no, but to absorb all volume that will be generated, will require infrastructure, logistics and the industry ready to use the energy generated,” says Bakli.

“But it’s huge by size and has gathered true tier 1 actors, which are the ingredients for making this project reality.”

Energy & Utilities reported recently that Hitachi Energy agreed to develop three HVDC power lines with total power capacity up to nine GW for NEOM utility company ENOWA. E&U reported last year that a consortium led by Japan’s Itochu and France’s Veolia was awarded a contract to develop a 500,000 cm/d carbon-free desalination plant at Oxagon.