ACWA Power, a utility developer partially controlled by Saudi Arabia’s Public Investment Fund, aims to close funding for a multi-billion dollar green hydrogen project in the third quarter, according to the company’s top executive.

As part of Crown Prince Mohammed bin Salman’s effort to diversify the economy, Saudi Arabia, one of the world’s leading oil exporters, aims to become the largest provider of green hydrogen by 2030, with a production target of 4 million tonnes.

ACWA’s CEO Paddy Padmanathan told Reuters, when questioned about the closure of the project finance facility for the $5 billion plant expected to be erected in the proposed futuristic city NEOM, that good news should be forthcoming during the third quarter.

In an earlier interview conducted in October, Padmanathan anticipated that the money would be in place by the first quarter.

Padmanathan stated that procurement and construction of the green hydrogen plant are underway and that it is anticipated to be operational in the first quarter of 2026.

As Saudi Arabia strives to achieve first-mover advantage and dominate the business, it is anticipated that further factories would be constructed.

Padmanathan added that ACWA Power plans to acquire financing for the 700-megawatt Ar Rass photovoltaic solar plant in Al Qassim province this year.

The CEO stated that the effective blockade of the Black Sea as a result of Russia’s invasion of Ukraine has hampered the delivery of large equipment to ACWA projects in Uzbekistan and Azerbaijan.

“Due to supply chain bottlenecks, the projects are under increasing pressure. It’s no longer only about inflation, but also about availability “Padmanathan stated regarding ACWA projects in general.

According to him, delays of one to three months are reasonable, and the company is collaborating with other partners, contractors, and offtakers to address these and other challenges caused by lockdowns in China.

“We pass the risk on to other parties who are better equipped to manage it,” he explained.