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David Edmondson, CEO of NEOM
Engineering works at NEOM Green Hydrogen Co. are 60% complete and 80% of the main procurement orders placed, CEO David Edmondson told press reporters, adding that the project spans 352 square kilometers.
The green hydrogen project received an overwhelming turnout from the local, regional and international banks and financial institutions, Edmondson said, noting that it received $6.1 billion in non-recourse financing.
The National Development Fund (NDF) and Saudi Industrial Development Fund (SIDF) contributed with over 40% of the project’s financing, the CEO said.
Additionally, 13 international banks participated in arranging funds for NEOM, which highlights the global interest towards investments in Saudi Arabia and NEOM, he added.
The company aims to support the global industry in transition from conventional fuels to cleaner sources.
The project size will help reduce the cost of hydrogen production and help fulfill demand via producing large volumes targeting the international markets.
Hydrogen-to-ammonia conversion is a low-cost and highly efficient method for distribution, as it allows for sea transport. Further, the company built a large storage space on site its ammonia production facility.
NEOM Green Hydrogen also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility. Air Products will transfer products to UK, Germany and Holland, with an announced investment of over $2 billion.
Earlier this week, NEOM Green Hydrogen 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, Argaam reported.
NDF, through its affiliated units, contributed to financing the world largest green hydrogen plant at Oxagon at over SAR 10.3 billion financing in partnership with local and international banks.
In July 2020, NEOM inked a partnership agreement with Air Products and ACWA Power at $5 billion to build an eco-friendly hydrogen facility in NEOM to provide sustainable solutions for the global transport sector and to mitigate the impact of the climate change through reducing carbon emissions.
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