ACWA Power, a Saudi Arabian utility developer, has secured a $900 million deal for the NEOM Green Hydrogen Project.
According to a bourse announcement on Tadawul, the signing of the Limited Notice to Proceed (LNTP) agreement refers to the engineering, procurement, and construction (EPC) contract for the manufacturing of green ammonia.
The Neom project, a collaboration between ACWA Power, Air Products, and NEOM, is billed as the world’s largest green hydrogen manufacturing facility. The electricity utilized to produce green hydrogen will come from a total renewable energy capacity of over 4GW. The JV is planned to produce 1.2 million tons of green ammonia each year.
ACWA Power, along with Air Products (33.3 percent) and NEOM Company, controls 33.3 percent of the NEOM Green Hydrogen Company (33.4 percent ).
The contract is for a period of six months. Under the LNTP, if financial closure is not reached and the project is abandoned, ACWA Power could have a maximum aggregate exposure of $300 million.
Last year, ACWA Power announced a $5 billion joint venture with NEOM and Air Products to create 650 tons of green hydrogen per day using renewable energy.
