NEOM green hydrogen project on track for 2026 completion
RIYADH, July 6, 2023
Global utility project developer Acwa Power has announced that work is currently underway on its ambitious green hydrogen facility at Oxagon within the Saudi futuristic city Neom and is due for completion by the end of 2026.
The mega project, being developed by NEOM Green Hydrogen Company (NGHC) - a joint venture between Acwa Power, US industrial gases leader Air Products and NEOM - at a total investment value of $8.4 billion, is set to become the largest green hydrogen production facility in the world.
TradeArabia had earlier reported Haldor Topsoe, a global leader in catalysis and chemical processing, would alsio be playing a major role in the project, providing the technology to produce the green ammonia, along with Baker Hughes the technology partner for hydrogen compression. Air Products will be deploying its own air separation technology.
NGHC has issued a full notice to proceed (NTP) to the EPC contractor Air Products, which has been approved, said Acwa in its filing to Saudi bourse Tadawul.
Following this development, Acwa Power's SR1.125 billion ($300 million) contribution in the Limited Notice To Proceed (LNTP) will now be considered as part of its equity contribution in the project.
Concurrently, all project agreements have been executed whereby shareholders have agreed to manage certain execution risks related to the engineering, procurement, and construction of the project.
NGHC had announced the signing of financial deals with 23 local, regional, and international banks and investment firms in May this year.
According to NEOM, the NGHC plant will start producing green hydrogen from 100% renewable energy sources in 2026, with production of up to 1.2 million tonnes of green ammonia annually – a figure equivalent to 600 tonnes of green hydrogen per day.
This green ammonia will be exported to global markets, supporting the decarbonization of the heavy-duty transport sector aimed at reducing carbon dioxide emissions.
It is estimated that as a direct impact of the plant, up to 5 million tonnes of CO2 will be saved per year, it added.-TradeArabia News Service
