Home NewsEngineering Global Investment and Finance Middle East World’s largest green hydrogen production facility being built in Saudi Arabia at a total investment value of USD 8.4 billion.

World’s largest green hydrogen production facility being built in Saudi Arabia at a total investment value of USD 8.4 billion.

NEOM Green Hydrogen Company (NGHC) has achieved financial close on the world’s largest green hydrogen production facility, located in Saudi Arabia’s NEOM region. The project has secured a total investment of $8.4 billion through agreements with 23 local, regional, and international banks and investment firms. NGHC has also signed an engineering, procurement, and construction (EPC) agreement with Air Products as the contractor and system integrator for the entire facility.

The project’s financing structure has been certified by S&P Global as adhering to green loan principles, making it one of the largest project financings under the green loan framework. Air Products has already awarded major contracts to technology and construction partners.

NGHC has secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility. This agreement will unlock the economic potential of renewable energy across the entire value chain. NGHC is a joint venture between ACWA Power, Air Products, and NEOM.

The 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. The hydrogen will be in the form of green ammonia, providing a cost-effective solution for the transportation and industrial sectors globally.

The financial close represents a significant milestone for the project, demonstrating the potential of NGHC’s green hydrogen initiative and its alignment with NEOM’s vision to accelerate renewable solutions. The project aims to lead the world in the hydrogen revolution by utilizing NEOM’s abundant natural resources and driving Saudi Vision 2030’s sustainable development goals.

NGHC’s CEO, David R. Edmondson, expressed excitement about achieving financial close and emphasized the project’s role in the global transition to a carbon-free future. Air Products, the exclusive off-taker, sees the project as a way to provide clean hydrogen to global mobility and industrial markets, contributing to the decarbonization of heavy-duty transportation and industrial sectors.

ACWA Power, another partner in the venture, views the project as a significant step toward supporting Saudi Arabia’s Vision 2030 and its commitment to clean, sustainable power. The financial agreements were made possible through a diverse range of local, regional, and international banks and financial institutions.

The Ministry of Industry and Mineral Resources of Saudi Arabia awarded NGHC its first industrial operating license in January 2023, positioning the Kingdom as a leading hydrogen producer and maintaining its importance in the energy sector. Construction is already underway, with production scheduled to begin by the end of 2026.

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