NEOM Green Hydrogen Company (NGHC) has announced that it has reached financial close on a massive green hydrogen production facility, with a total investment value of $8.4 billion. This development comes following the signing of financial documents with 23 local, regional, and international banks and investment firms. The plant is currently being constructed at Oxagon, in the NEOM region of Saudi Arabia. Additionally, NGHC and Air Products, the facility’s designated contractor and system integrator, have completed an engineering, procurement, and construction (EPC) agreement.
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 4 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.
REGlobal’s Views: The successful implementation of this massive project will help cement Saudi Arabia’s standing in the MENA region as an important energy player not only in conventional fuels space but also in low-carbon fuels. This project will set a precedent for other large hydrogen projects in the region.