Neom Green Hydrogen Company (NGHC) has announced that following the signing of financial deals with 23 local, regional, and international banks and investment firms, it has now achieved financial close on the world’s largest green hydrogen production facility at a total investment value of $8.4 billion.
The plant is currently being built at Oxagon, in Neom, Saudi Arabia. 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.
Additionally, NGHC also announced that the non-recourse financing structured for the project has been certified by S&P Global (as the second party opinion provider) as adhering to green loan principles and is one of the largest project financings put in place under the green loan framework.
Air Products has already awarded major contracts to various technology and construction partners, said a statement.
Neom Green Hydrogen Company also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which will unlock the economic potential of renewable energy across the entire value chain.
An equal joint venture between ACWA Power, Air Products and Neom, NGHC’s mega-plant will integrate up to 4 gigawatt (GW) 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.
Nadhmi Al-Nasr, Chairman, Neom Green Hydrogen Company, and Chief Executive Officer, Neom said: “This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. With the financial close announced today, we are taking a massive leap towards opening the plant, in line with Neom’s vision to accelerate renewable solutions.”
“At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of Neom’s abundant natural resources, NGHC’s project will pave the way for the large-scale adoption of green hydrogen, while driving Saudi Vision 2030’s sustainable development goals.”
David R Edmondson, Chief Executive Officer of NGHC, said: “I’m excited to announce that NGHC, together with our three partners ACWA Power, Air Products and Neom, has achieved another significant milestone in our project by achieving financial close on the world’s largest green hydrogen plant with 23 banks and investment firms.
“This is a historic moment as we drive large-scale adoption of green hydrogen as the clean solution to the world’s growing energy demands. This has enabled us to also conclude the EPC agreements with Air Products for a value of $6.7 billion. Today, we are already well underway building the world’s largest facility to produce green hydrogen at scale with production scheduled to begin by the end of 2026.
“We are grateful for the significant support and commitment of our shareholders and the investment community to achieve project financing at this scale and look forward to leading the charge on the global transition to a carbon-free future.”
Seifi Ghasemi, Chairman, President and Chief Executive Officer, Air Products, added: “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. 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. Producing and exporting green ammonia supports the decarbonisation of these heavy-duty transportation and industrial sectors and will save the world about five million tonnes of carbon dioxide per year.
“As the primary EPC contractor and system integrator for the facility, we are proud of the significant progress made with engineering and have awarded all major subcontracts for the project. Land preparation is also complete, construction is well underway, and the joint venture team is in place and actively executing to bring green energy to the world by the end of 2026.”
Mohammad Abunayyan, Chairman, ACWA Power, added: “As an energy transition leader and Saudi national champion, ACWA Power is proud to support and facilitate the successful financial close of this iconic green hydrogen project, marking our continued commitment alongside our partners, to Saudi Arabia's Vision 2030. We have a proven track record of leveraging innovative solutions and advanced technology to deliver clean, sustainable power at the lowest cost.
“With the combined experience of our global utility scale renewable projects and innovative partners, we are making rapid strides towards the development of NGHC's giga scale-plant, integrating up to 4GW of renewable power from solar and wind energy to supply green hydrogen to global markets at scale. This is a significant step forward in our shared purpose to accelerate the shift to clean energy and support the Kingdom’s decarbonization goals."
NGHC’s financial agreements were concluded through a diverse mix of local, regional and international banks and financial institutions, along-with an Euler Hermes tranche with no fewer than 23 institutions investing in the project, located in Neom, Saudi Arabia.
Earlier in January 2023, Saudi Arabia’s Ministry of Industry and Mineral Resources awarded its first industrial operating license to NGHC, paving the way for the Kingdom to become the world’s leading hydrogen producer, while maintaining its position as a key player in the energy sector, the statement said.