Neom Green Hydrogen Company (NGHC) has signed multiple financial facility agreements with local, regional and international banks and financial institutions to support the construction of the world’s largest green hydrogen production plant in Neom, the sustainable city project in Saudi Arabia. The quantum of funds committed by the lenders with Saudi Industrial Development Fund (SIDF) stand at $5 billion.
NGHC is yet to reveal the financing in concrete terms but it said that the National Infrastructure Fund (NIF) will also have significant participation in the hydrogen project.
The entire project envisages the generation of 4GW of renewable energy that will be used for the production of up to 600 tons of green hydrogen on a daily basis that could further be employed for the production of 1.2 million tons of green ammonia by 2026.
The entire project is being developed by a joint venture (JV) between Air Products, Saudi Arabia’s ACWA Power and the City of Neom. Germany based ThyssenKrupp will supply an electrolysis plant to the Neom project.
US based gas and chemical firm Air Products has signed a long-term agreement with the developers under which the company will export the green fuels as ammonia.
David R. Edmondson, Chief Executive Officer, NEOM Green Hydrogen Company (NGHC), said, “NGHC have 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.”
He added, “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. We are grateful for the significant support from our shareholders and the investment community to making that happen.”
The Majesty of Neom
The Kingdom of Saudi Arabia has an ambitious project to develop a new green and sustainable city in Tabuk province that would sit on the coast of the Red Sea – Neom. The strategic location on one of the busiest international routes is expected to create a favourable atmosphere for the fast development of the Neom. The city will be powered by 15 GW renewable energy capacity by the end of this decade.