NEOM secures $8.4 bn financing for green hydrogen plant

World's largest carbon-free plant to produce green ammonia by 2026
NEOM hydrogen

NEOM Green Hydrogen Company (NGHC), a joint venture (JV) between ACWA Power, Air Products, and NEOM, has announced the successful completion of financing agreements for a green hydrogen production facility.

The total investment value for the plant, which is being built in Oxagon, in Saudi Arabia’s NEOM region, is $8.4 billion.

The JV secured the financing through 23 local, regional, and international banks and investment firms.

Read more: PIF, ACWA Power to develop $3.2 bn Saudi solar projects

According to NGHC, the world’s largest carbon-free green hydrogen plant will produce green ammonia at scale by 2026.

Air Products has been nominated as the contractor and system integrator for the entire facility, and NGHC has also secured an exclusive 30-year off-take agreement with them for all the green ammonia produced at the plant.

The project is owned equally by the three partners. 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.

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.

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