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Saudi’s Neom signs agreements to fund green hydrogen project

Neom
The mega-plant will integrate up to 4GW of solar and wind energy to produce up to 1.2 million tonnes of green ammonia.

Neom Green Hydrogen Company (NGHC) has signed facility agreements with local, regional and international banks and completed a commitment letter with the Saudi Industrial Development Fund (SIDF) for the $5 billion green hydrogen production facility in the Neom mega project. 

The financing for the world’s largest green hydrogen production facility is structured with significant participation from SIDF and the National Infrastructure Fund (NIF), NGHC said in a statement.

The mega-plant will integrate up to 4GW of solar and wind energy to produce up to 1.2 million tonnes of green ammonia, translating to up to 600 tonnes per day of carbon-free hydrogen. 

Once the plant at Neom is operational by 2026, 100 percent of the green hydrogen produced will be available for global export, in the form of ammonia, through an exclusive long-term agreement with Air Products.

David R. Edmondson, chief executive officer of NGHC, said: “NGHC has a clear mission, to leverage the expertise and vision of its partners to accelerate the global green hydrogen economy. This is fully in line with Vision 2030 and the goals of the Saudi Green Initiative. 

“The recent convening of the investment community in Riyadh is an important step towards the milestone of achieving financial close in early 2023 to deliver the world’s largest facility to produce green hydrogen at scale.”

NGHC is an equal joint venture created by ACWA Power, Air Products and Neom. 

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