Saudi's $8 Billion NEOM Hydrogen Project Secures Full Funding

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Saudi Arabia has secured full financing of US$8.4 billion to advance its NEOM hydrogen plant, the world's largest utility-scale, commercially-based hydrogen facility powered by renewable energy.

NEOM Green Hydrogen Company (NGHC) (NEOM, Saudi Arabia) has signed financial documents with 23 local, regional, and international banks and investment firms, to raise the US$6.1 billion in external financing to fully complete the facility, which is under construction at Oxagon, in the planned smart city of NEOM in Tabuk Province. NGHC is jointly owned by ACWA Power (Riyadh, Saudi Arabia), Air Products and Chemicals Incorporated (NYSE:APD) (Allentown, Pennsylvania) and Saudi's state-owned NEOM (NEOM, Saudi Arabia).

It forms part of the ambitious desert-based NEOM city and industrial project, which will cover 26,500 square kilometers, covering multiple regions and include a floating industrial complex, global trade hub, tourist resorts and a linear city--all powered by renewable energy. The cost is estimated at more than US$500 billion but the overall project is behind original estimates.

The NGHC plant will start producing green hydrogen from 100% renewable energy in 2026, producing enough hydrogen via electrolysis to make 600 tons of green ammonia per day--1.2 million tonnes per year. The facility will integrate up to 4 gigawatts (GW) of solar and wind power. Industrial Info is tracking 10 projects associated with the plant. A separate 30-year offtake deal has also been agreed with Air Products for all of the green ammonia produced at the plant, which will be exported globally.

"This substantial financial backing from the investment community shows the unmatched potential of NGHC's green hydrogen project," said Nadhmi Al-Nasr, chairman, NEOM Green Hydrogen Company, and chief executive officer, NEOM. "With the financial close announced today, we are taking a massive leap towards opening the plant, in line with NEOM's vision to accelerate renewable solutions."

Seifi Ghasemi, chairman, president and chief executive officer, Air Products, added: "Air Products is the exclusive off-taker and will absorb the full production volume of the green hydrogen produced in the form of green ammonia at the NGHC facility to serve global mobility and industrial markets. Producing and exporting green ammonia supports the decarbonisation of these heavy-duty transportation and industrial sectors and will save the world about 5 million tonnes of carbon dioxide per year."

thyssenkrupp nucera, part of Germany's Thyssenkrupp (Essen), will supply 2 GW of its 20-megawatt (MW) electrolysis modules for the project.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).