Similar to its massive project in NEOM, the business intends for ACWA Power Saudi Arabia to construct up to three additional green hydrogen plants.
According to CEO Paddy Padmanathan, ACWA Power intends to build two further projects close to an $8.5 billion green hydrogen plant in NEOM, a $500 billion city on the northwest coast of Saudi Arabia.
The demand for green hydrogen, he predicted, will increase as corporations and governments move more quickly to reduce carbon emissions. He added that the company is also considering moving to a different site.
Said Padmanathan “Five of these projects may be carried out by ACWA Power on its own. We are searching for two more projects concurrently now that the first one has been financially concluded.”
Create green hydrogen by splitting water atoms with the help of solar and wind energy. In the ensuing decades, the switch to clean energy is anticipated to require this kind of fuel. Although green hydrogen is still far more expensive than oil and natural gas, its developers are optimistic that they can reduce costs to a point where it is competitive.
According to Padmanathan, the consortium behind Neom Green Hydrogen, which also comprises NEOM and the American corporation Air Products & Chemicals, will likely develop further green hydrogen projects.
According to Padmanathan, as local supply chains grow, technology advances, and developers gain more experience, the cost of the additional plants will likely be lower than it was for the NEOM’s first plant.
Compared to the initial estimate of $5 billion, the expenses of the first plant have skyrocketed. This is large because of inflation, which has raised the cost of electrolyzers, solar panels, and wind turbines.
“Costs will go down when you develop for the second time,” continued Padmanathan.
One of the first facilities of this size to be built, NEOM’s ACWA Power, with a $27 billion market capitalization, signed financing agreements for its first project on Wednesday. This facility is anticipated to export 600 tons of ammonia-derived hydrogen daily. According to Padmanathan, part of the output from upcoming initiatives might be applied to regional industries.
Padmanathan pointed out that the Saudi government’s Shareek initiative, which attempts to encourage businesses to engage in establishing new industries within the Kingdom, supports the company’s goals for hydrogen.
The company has also previously stated aspirations to build green hydrogen facilities in Thailand, Oman, and Uzbekistan.
