NEOM Green Hydrogen Co. reaches financial close for carbon-free green hydrogen plant
Published by Bella Weetch,
Global Hydrogen Review,
NEOM Green Hydrogen Co. (NGHC) has 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 US$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.
NGHC also secured an exclusive 30-year offtake 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 (JV) 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 tpd 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.
NGHC’s financial agreements were concluded through a diverse mix of local, regional and international banks and financial institutions, along with an Euler Hermes tranche with no fewer than 23 institutions investing in the project, located at Oxagon, in Saudi Arabia’s region of NEOM.
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.
Read the article online at: https://www.globalhydrogenreview.com/hydrogen/23052023/neom-green-hydrogen-co-reaches-financial-close-for-carbon-free-green-hydrogen-plant/
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