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06-06-2024
RIYADH: Wesam Al Ghamdi, the CEO of Neom Green Hydrogen Co, claimed to be the world’s largest hydrogen plant, has revealed that the construction of the plant is advancing significantly.
The hydrogen plant is under-construction on the floating port “Oxagon”, one of the many projects under Saudi Arabia’s $1.5 trillion mega-project, Neom.
The futuristic city is the tourist destination with much more in stock than just luxury hotels and fancy villas.
The unique concept paves the way for a better way of living and realizes Crown Prince Mohammed bin Salman’s sustainability vision for Neom.
According to a statement by ACWA Power, which will jointly develop Neom with Air Products, said in a statement that the plant is now formally under construction and is expected to be completed by the end of 2026, Luxury Launches reported.
Al Ghamdi highlighted recent developments such as the procurement of initial supplies, installation work, and the expectation of more deliveries this year.
He also noted that an incredible $8.4 billion in funding has accelerated construction, with the ultimate aim of producing four million tonnes of clean hydrogen annually by 2030.
Once completed, the hydrogen plant will deliver 600 tonnes of carbon-free hydrogen daily, enough to power around 20,000 hydrogen buses.
NEOM Green Hydrogen Company (NGHC) 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.
Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Company, and Chief Executive Officer, NEOM said:
“This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. 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.”
“At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM’s abundant natural resources, NGHC’s project will pave the way for the large-scale adoption of green hydrogen, while driving Saudi Vision 2030’s sustainable development goals.” (Int’l Monitoring Desk)
