In a historic leap towards sustainable energy solutions, the NEOM Green Hydrogen Company (NGHC) has completed its financial close, bringing in a total investment of USD 8.4 billion for the world's largest carbon-free green hydrogen plant12. An initiative of ACWA Power, Air Products, and NEOM, NGHC is set to spearhead the large-scale production of green ammonia by 2026, marking a transformative moment in the energy sector.
Situated in Oxagon, Saudi Arabia's NEOM region, the mega-plant will harness up to 4GW of solar and wind energy to produce up to 600 tonnes of carbon-free hydrogen per day3. With the financial agreements secured from 23 local, regional, and international banks and financial institutions, the project is a testament to the unmatched potential of green hydrogen4.
The project financing adheres to green loan principles and is one of the largest of its kind under the green loan framework, as certified by S&P Global5. NGHC has also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, unlocking the economic potential of renewable energy across the entire value chain6.
In January 2023, Saudi Arabia’s Ministry of Industry and Mineral Resources awarded its first industrial operating license to NGHC, setting the stage for the Kingdom to become a global leader in hydrogen production7.
This project is not just a milestone for NGHC and its partners, but also a giant leap towards realizing Saudi Arabia's Vision 2030's sustainable development goals8. "We are grateful for the significant support and commitment of our shareholders and the investment community to achieve project financing at this scale," said a spokesperson for NGHC, "Today, we are already well underway building the world's largest facility to produce green hydrogen at scale with production scheduled to begin by the end of 2026"9.
Air Products, the exclusive off-taker, will absorb the full production volume of the green hydrogen in the form of green ammonia. The company anticipates that this will serve global mobility and industrial markets and could save the world approximately five million tonnes of carbon dioxide per year10.
As we look forward to a future powered by green energy, the NGHC plant, backed by its strategic partnerships and innovative technology, stands as a beacon of sustainability and innovation. It underscores the critical role of renewable solutions in meeting the world's growing energy demands and accelerating the global transition to a carbon-free future11.
ACWA Power, a joint venture partner, highlights the significance of this step in supporting Saudi Arabia's Vision 2030. "This is a significant step forward in our shared purpose to accelerate the shift to clean energy and support the Kingdom’s decarbonization goals," a representative of ACWA Power stated12.
This project marks a major stride towards a sustainable future, and we eagerly await its impact on the energy landscape. As the plant gears up for production in 2026, the stage is set for a green energy revolution. The world is watching, and the future looks brighter (and greener) than ever.