NEOM Green Hydrogen Company completes financial close
NEOM Green Hydrogen Company completes financial close at a total investment value of USD 8.4 billion in the world’s largest carbon-free green hydrogen plant.
NEOM Green Hydrogen Company is an equal joint venture by ACWA Power, Air Products and NEOM, building the world’s largest green hydrogen plant to produce green ammonia at scale in 2026.
The project at a total value of USD 8.4 billion is being financed with USD 6.1 billion non-recourse financing from 23 local, regional and international banks and financial institutions.
An exclusive 30-year off-take agreement of all the produced green ammonia has been secured.
NGHC have concluded the Engineering, Procurement and Construction (EPC) agreements with Air Products at a value of USD 6.7 billion.
NEOM, Saudi Arabia – 22 May 2023: NEOM Green Hydrogen Company (NGHC) today announced that following signing financial documents 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 USD 8.4 billion. 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.
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.
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 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.
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 at Oxagon, in Saudi Arabia’s region of NEOM.
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.