NEOM green hydrogen company announced the completion of the financial closure phase of the project to establish the largest green hydrogen production plant in the world with a total investment of USD 8.4 billion, after signing financial documents with 23 local, regional and international banks and investment companies.

The plant is being built in the city of "oxagon" within the "NEOM" area, and the company has also concluded an agreement to carry out engineering, procurement and construction works with the company "Air Products", as the contracting company responsible for the implementation of these works and ensuring the integration of systems at the factory level in general.

NEOM green hydrogen company also announced the approval of S & P Global Credit Ratings, as an independent second party that provides an objective opinion, for the financing structure without recourse, confirming the commitment of this project to the terms of green loans, noting that this financing is the largest of its kind in the framework of green financing, and "Air Products" Company, in turn, awarded major contracts to a number of partners in the fields of technology and construction.

In addition, NEOM green hydrogen has signed an exclusive 30-year agreement with Air Products, which will purchase the entire green ammonia produced by the plant, in a move aimed at seizing the economic opportunities associated with renewable energy at various stages of the value chain.

The huge hydrogen plant of NEOM green hydrogen company, which is an equal partnership for the implementation of a joint venture between "ACWA Power","Air Products" and"NEOM", will produce up to 4 GW of solar and wind energy, which in turn will be used to produce up to 600 metric tons per day of carbon-free hydrogen by the end of 2026, in the form of green ammonia as a cost-effective solution for the transport and industrial sectors at the global level.

On this occasion, the chairman of the board of Directors of NEOM green hydrogen and CEO of NEOM engineer Nazmi Al-Nasr said : this great financial support provided by investment companies shows the enormous potential inherent in our project aimed at producing green hydrogen.this project is the first of its kind in the world to produce hydrogen on a large scale, in a pioneering step towards leading the global endeavors aimed at switching to hydrogen as a renewable energy source. with the announcement today that we have reached the stage of financial closure of this project, the pace of work being carried out on the ground to translate our ambition into reality will accelerate significantly.

He added: the NEOM green hydrogen project benefits from the abundant natural resources that abound in "NEOM", to support global efforts aimed at producing and using green hydrogen on a large scale, thus contributing to achieving the economic development goals within the Saudi Vision 2030.

For his part, CEO of NEOM green hydrogen company David Edmondson said: I am pleased to announce the success of NEOM green hydrogen company, in cooperation with its three partners "ACWA Power","Air Products" and"NEOM", in achieving an additional achievement at the level of our project, after we reached the stage of financial closure of the largest green hydrogen production plant in the world with 23 banks and investment companies. This is a significant achievement in our ambitious drive to move towards the widespread adoption of green hydrogen as a clean solution to meet the growing energy demand around the world.this has allowed us to conclude agreements for the implementation of engineering, procurement and construction work with the company "Air Products" worth 6.7 billion US dollars. today we are working at an accelerated pace to establish the largest plant in the world to produce green hydrogen on a large scale, noting that production operations are scheduled to begin at the end of 2026.

He added: We are very pleased to receive such remarkable support and great commitment from the company's shareholders and investors to successfully finance our project on this scale. We look forward to leading the global effort to shift towards a carbon-free future".

Saifi Qasimi, Chairman and CEO of Air Products, commented: "We are proud of our contribution to shaping the future of the energy sector through the implementation of pioneering projects such as this one, to provide clean hydrogen globally in sustainable ways, Air Products will be the exclusive entity that will purchase the total amount of green hydrogen produced in the form of green ammonia at the NEOM green hydrogen plant, for use within the transport and industrial sectors around the world, explaining that the production and export of green ammonia contribute to the decarbonization of the heavy transport and industrial sectors, where carbon emissions are rising significantly, which in turn helps to avoid approximately five million metric tons of carbon dioxide annually globally.

He added: as the main contracting company responsible for the implementation of engineering, procurement, construction and systems integration works at the factory level, we are proud of the great progress we have made in terms of engineering works and major subcontracts that we have succeeded in concluding to implement this project.with the site ready for work, we are moving forward with construction work and the joint venture team is fully ready to start actual implementation, to provide the world with a green card at the end of 2026.

Chairman of the board of Directors of "ACWA Power" Mohammed abunyan commented: as a leading Saudi National Company in the field of energy transformation, we are proud of our contribution to ACWA Power by supporting and facilitating access to the financial closure stage of this qualitative and distinctive green hydrogen project, which reflects the continued commitment of ACWA Power and its partners towards achieving the goals of the kingdom's Vision 2030, especially with our qualitative experience and track record of achievements in the use of innovative solutions and advanced technologies to provide sustainable solutions for clean energy at low cost.

He added: We are steadily proceeding based on our experience that we have achieved in many qualitative and innovative projects in the field of renewable energy around the world in cooperation with a group of innovation partners, where we have achieved effective and qualitative steps in our work towards the development of one of the largest stations for NEOM green hydrogen, which aims to integrate up to 4 GW of renewable energy from solar and wind to supply the global markets with green hydrogen on a large scale, an achievement that is an important step towards achieving our common goals to accelerate the transition to clean energy and support the kingdom's goals in decarbonization.

It should be noted that NEOM green hydrogen company has successfully concluded financing agreements with a variety of local, regional and international banks and investment companies, in addition to a financing tranche from Euler Hermes, noting that at least 23 financing entities have initiated investment in this project located in the city of "oxagon" within the "NEOM" region in the kingdom of Saudi Arabia.

It is also worth mentioning that in January 2023, the Ministry of industry and mineral resources in the kingdom granted the first industrial operating license to NEOM green hydrogen company, in a step that contributes to paving the way for the kingdom to lead the efforts of producing green hydrogen globally, in light of consolidating its position as a leading country in the global energy sector.