In a significant stride towards achieving its sustainability goals, NEOM Green Hydrogen Co. (NGHC) is spearheading the establishment of the world's largest green hydrogen plant, set to commence full-time operations by 2026. The project, aiming to revolutionize the ongoing energy transition journey, has garnered considerable attention for its potential to contribute to Saudi Arabia's commitment to sustainable development.
NGHC's CEO, David Edmondson, expressed confidence in overcoming any challenges that may arise during the construction of the groundbreaking hydrogen plant, emphasizing the uncharted territory the company is navigating in the realm of green hydrogen and sustainable energy. Edmondson acknowledged the magnitude of the project and assured that NGHC has already recruited a team of talented professionals to tackle the endeavor.
Backed by shareholders and supported by technology partners, NGHC reached a significant milestone with the financial closure of the project, securing a total investment value of $8.4 billion. The company signed financial agreements with 23 local, regional, and international banks and investment firms, including prominent institutions like the Saudi Industrial Development Fund and National Infrastructure Fund. The financial backing reaffirms the immense potential of NGHC's green hydrogen initiative.
The joint venture, equally shared between ACWA Power, Air Products, and NEOM, aims to integrate up to 4 gigawatts of solar and wind energy to produce an impressive 1.2 million tons of green ammonia. By the end of 2026, the mega-plant is projected to generate up to 600 tons per day of carbon-free hydrogen. Air Products has been appointed as the nominated contractor and system integrator for the entire facility, as NGHC has successfully concluded the engineering, procurement, and construction agreement.
Nadhmi Al-Nasr, Chairman of NGHC and CEO of NEOM, expressed enthusiasm for the project's financial closure, emphasizing its alignment with NEOM's vision to accelerate renewable solutions. Mohammed Abunayyan, Chairman of ACWA Power, also expressed pride in supporting the much-anticipated green hydrogen facility, highlighting its contribution to Saudi Arabia's Vision 2030 goals and the shift towards clean energy.
Edmondson highlighted the unwavering support from shareholders and the investment community, crucial for turning the green hydrogen project into a reality. With $6.1 billion in non-recourse financing provided by the 23 banks and financial institutions, NGHC's project demonstrates its potential to lead the world in the future's hydrogen revolution.
As the green hydrogen facility prepares for operation, Edmondson emphasized the pivotal role of technology partners in ensuring seamless integration throughout the entire facility. He further highlighted the Middle East and North Africa region's potential to become a global renewable powerhouse, with ample access to sunlight and wind, positioning it to excel in green hydrogen, green ammonia, and low-carbon fuel production.
Edmondson concluded with optimism, envisioning a future where the region establishes world-class infrastructure and internationally recognized certification systems, assuming a prominent position in the field of sustainable energy as reliance on fossil fuels diminishes and demand for cleaner alternatives grows.