Name of Client : NEOM Green Hydrogen Company

Estimated Budget : $600,000,000

Facility Type :  Ammonia, Hydrogen

Sector : Chemicals, Renewablee

Main Contractor : Air Products

Location : Neom, Saudi Arabia

Award Date :  2023-Q1

Background

Neom, ACWA Power, and Air Products have signed an agreement for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy. The project, equally owned by the 3 partners, will be located in Neom and will produce green ammonia for export to global markets. The three companies have established the Neom Green Hydrogen Company to oversee the project. Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

Project Status

As of November 2024, Construction of the hydrogen plant has reached a completion rate of 60 per cent. The facility is scheduled to go on- stream at the end of 2026.

Project Scope

The scope of work includes the development of hydrogen and nitrogen storage facilities, as well as a green ammonia plant and storage facilities that utilise Haldor Topsoe technology, featuring ammonia tanks that each measure 40 m in height and 76 m in diameter.

Project Finance

The joint venture of NEOM, ACWA Power, and Air Products is project client.

About 20 per cent of the project will be funded with equity, while the rest will be through limited-recourse debt. ENOWA, NEOM's subsidiary, represents NEOM as the principal shareholder of the project.

In December 2022, NGHC completed a credit facility agreement with local, regional, and international banks.

Project Schedules

Project Announced : 3Q-2020

Design : 2Q-2021

EPC ITB : 3Q-2021

EP : 1Q-2023

Construction : 1Q-2023

Completion : 4Q-2026