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Logo of ACWA Power Co.
ACWA Power Co. signed a limited notice to proceed (LNTP) agreement for the engineering, procurement and construction (EPC) contract for the NEOM Green Hydrogen Project, at a total value of $900 million, according to a bourse filing.
The six-month contract was inked on April 3, the statement added.
The LNTP agreement will cover an in-Kingdom LNTP to proceed with the EPC contract between NEOM Green Hydrogen Company and Air Products Middle East Industrial Gases LTD and an out-of-Kingdom LNTP to proceed with the EPC contract between NEOM Green Hydrogen Company and Air Products Equipment limited.
The agreement also includes that the parent firm guarantee and coordinate deed for the LNTP in relation to the EPC contract between NEOM Co., ACWA Power, Air Products Saudi Arabia Investment Co., Air Products Equipment Ltd, Air Products Middle East Industrial Gases LLC, Air Products and Chemicals, Inc.
If the financial close could not be achieved and the project was dropped, the maximum aggregate exposure can reach up to $300 million.
The NEOM Green Hydrogen Project is the world’s largest green ammonia project, with an expected capacity of 1.2 million tons per annum of green ammonia and will use over 4 gigawatts of combined renewable energy capacity to generate the power used for producing green hydrogen.
ACWA Power owns 33.3% of the NEOM Green Hydrogen Company, Air Products (33.3%) and NEOM Co. (33.4%).
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