Neom Green Hydrogen Company (NGHC) today announced financial close on its green hydrogen-to-ammonia production project in northwest Saudi Arabia at a total investment value of USD 8.4 billion (EUR 7.77bn).
NGHC, an equally owned joint venture of Saudi Arabia's ACWA Power Co (TADAWUL:2082), US industrial gases company Air Products (NYSE:APD) and Neom, has signed agreements with 23 local, regional, and international banks, and investment firms, securing USD 6.1 billion in non-recourse financing.
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"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," commented NGHC's chairman Nadhmi Al-Nasr.
The plant is already under construction at Oxagon, in Saudi Arabia’s northwestern province of Tabuk. The engineering, procurement and construction (EPC) contracts with Air Products for the mega-project amount to USD 6.7 billion.
Powered by up to 4 GW of solar and wind, the site is planned to begin producing up to 600 tonnes per day of renewable hydrogen by the end of 2026. Air Products will be the sole off-taker of the ammonia produced at the site under an exclusive 30-year supply agreement.
Air Products' chief executive Seifi Ghasemi noted that all major subcontracts for the project have been awarded, land preparation is complete and construction is well underway.
In January, NGHC received its first industrial operating licence from Saudi Arabia’s Ministry of Industry and Mineral Resources.