NEOM completes $8.4 bln financial close for mega hydrogen plant

Logo of NEOM

NEOM Green Hydrogen Co. (NGHC) announced the financial close of the world's largest $8.4 billion (SAR 31.5 billion) hydrogen production plant after signing financial documents with 23 local, regional and global banks and investment firms.

The plant is being built in Oxagon within NEOM giga-city.

The project secured non-recourse financing of $6.1 billion (SAR 22.9 billion) from 23 local, regional and international banks and investment companies.

NGHC has also concluded a $6.7 billion (SAR 25.1 billion) agreement to carry out engineering, procurement and construction works with Air Products, the contracting company responsible for implementing these works and ensuring systems integration at the plant level.

The company appointed S&P Global Ratings as an independent second party to provide an objective opinion on the financing structure without the right of recourse, in confirmation of the project commitment to the terms of green loans.

This financing is the largest of its kind within the framework of green financing. Air Products, in turn, awarded major contracts to a number of technology and construction partners.

In addition, NGHC entered into an exclusive 30-year agreement with Air Products, which will purchase all of the green ammonia produced by the plant.

In July 2020, NEOM, ACWA Power and Air Products signed an agreement for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy, according to Argaam's data.

The project involves the integration of over 4 gigawatts (GW) of renewable power from solar, wind and storage; production of 650 tons per day of hydrogen by electrolysis using ThyssenKrupp technology; production of nitrogen by air separation using Air Products technology, as well as the production of 1.2 million tons per year of green ammonia using Haldor Topsoe technology. 

The facility is scheduled to start production in late 2026. 

The Ministry of Industry and Mineral Resources issued in January 2023 the first industrial license for NEOM Green Hydrogen.