The largest green hydrogen production project in the world has achieved financial close with a total investment value of $8.4 billion. ACWA Power, Air Products, and NEOM, who are joint venture partners, announced this development. The project is being built by the NEOM Green Hydrogen Company (NGHC) in Oxagon, Saudi Arabia, within the NEOM region. It will be powered by 4 gigawatts of renewable energy and is expected to start producing up to 600 tonnes per day of green hydrogen in the form of green ammonia by late 2026. Initially estimated at $5 billion in 2020, the project aims to export approximately 1.2 million tonnes per year of green ammonia.
The joint venture recently finalized financial agreements with 23 local, regional, and international banks, as well as investment firms, securing non-recourse financing worth $6.1 billion. This financing has been certified by a third party as adhering to green loan principles and is considered one of the largest project financings under the green loan framework. The substantial financial support reflects the potential of NGHC's green hydrogen project and aligns with NEOM's vision of accelerating renewable solutions.
Air Products, the system integrator and primary contractor for the project, has also secured a $6.7 billion engineering, procurement, and construction (EPC) deal with the joint venture. Land preparation is already completed, and construction is progressing well. Air Products will purchase the entire production capacity of the project under a 30-year offtake agreement, supporting Saudi Arabia's ambition to become a major hydrogen exporter. The specific commercial details of the agreement were not disclosed, but the supplies will target global mobility and industrial markets.
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