NEOM Green Hydrogen Company (NGHC) has achieved a major milestone by securing financial close on the world’s largest green hydrogen production facility.
The plant, located in NEOM, Saudi Arabia, will have a total investment value of $8.4 billion. The project aims to revolutionize the hydrogen industry and accelerate the global transition to renewable solutions.
NGHC, a joint venture between ACWA Power, Air Products, and NEOM, has partnered with 23 local, regional, and international banks and investment firms for financing. The project has received certification from S&P Global for adhering to green loan principles, making it one of the largest project financings under the green loan framework.
The facility will be built at Oxagon and will integrate up to 4GW of solar and wind energy to produce 600 tonnes per day of carbon-free hydrogen by the end of 2026. The hydrogen will be converted into green ammonia, offering a cost-effective solution for the transportation and industrial sectors worldwide.
The financial backing and achievement of the project’s financial close highlight the immense potential of NGHC’s green hydrogen initiative. It aligns with NEOM’s vision to accelerate renewable solutions and supports Saudi Vision 2030’s sustainable development goals.
NEOM’s abundant natural resources, combined with the project’s scale, make it a pioneering endeavor in the global hydrogen revolution. The successful implementation of the green hydrogen plant will pave the way for widespread adoption of green hydrogen, contributing to the decarbonization efforts and a sustainable future.
NGHC has also secured a 30-year off-take agreement with Air Products for all the green ammonia produced at the facility. This exclusive partnership will unlock the economic potential of renewable energy throughout the value chain, driving the transition to a carbon-free future.
The project has already made significant progress, with the engineering, procurement, and construction (EPC) agreement concluded with Air Products as the nominated contractor and system integrator. Major contracts have been awarded to various technology and construction partners, signaling the project’s advancement.
The completion of NGHC’s financial agreements involved the participation of a diverse range of local, regional, and international banks and financial institutions. The project’s robust financial backing demonstrates the commitment of shareholders and the investment community to achieving a sustainable energy future.
With construction well underway and production scheduled to begin by the end of 2026, NGHC is actively driving the global transition to green hydrogen. The facility’s operation will contribute to significant carbon dioxide savings and support the decarbonization of heavy-duty transportation and industrial sectors worldwide.
The successful financial close of this iconic green hydrogen project is a testament to the commitment of all stakeholders, including NEOM, ACWA Power, Air Products, and the investment community. It marks a significant step towards realizing Saudi Arabia’s Vision 2030 and advancing the shift to clean energy.