Saudi Arabia’s NEOM has signed agreements with banks to finance a green hydrogen production plant.
The NEOM Green Hydrogen Company (NGHC) also executed a letter of commitment with the Saudi Industrial Development Fund.
The move is part of the kingdom’s efforts to built the world’s largest green hydrogen-based ammonia production plant for the futuristic city.
The green hydrogen project, which is set to begin operations in 2026 within NEOM, will use 4 gigawatts of renewable power from solar, wind and storage to produce 600 tonnes per day of hydrogen.
The project is expected to produce about 1.2 million tonnes of green ammonia per year.
“100 percent of the green hydrogen produced will be available for global export, in the form of ammonia, through an exclusive long-term agreement with Air Products,” NGHC said in an emailed statement.
“NGHC have a clear mission; to leverage the expertise and vision of its partners to accelerate the global green hydrogen economy. This is fully in line with Vision 2030 and the goals of the Saudi Green Initiative. The recent convening of the investment community in Riyadh is an important step towards the milestone of achieving financial close in early 2023, to deliver the world’s largest facility to produce green hydrogen at scale. We are grateful for the significant support from our shareholders and the investment community to making that happen,” NGHC chief executive officer David R. Edmondson said.
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