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Saudi Arabia’s ACWA reaches financial close for a US$8.4bn hydrogen project

NEOM Green Hydrogen Company (NGHC), an equal joint venture between Saudi Arabia’s ACWA Power, Air Products and NEOM, has reached financial close on its US$8.4bn large-scale green hydrogen production facility project, located near the city of Sharma in north-western Saudi Arabia. NGHC’s green hydrogen plant will integrate up to 4 GW of solar and wind capacity to produce up to 600 t/day (219 kt/year) of carbon-free hydrogen by the end of 2026, in the form of green-ammonia meant for the global transport and industrial sectors.

The financial close was achieved following the signing by NGHC of financial documents with 23 local, regional and international banks, as well as with investment firms. NHGC has also secured a 30-year off-take agreement with Air Products for all the green ammonia produced at the facility.

Saudi Arabia plans to develop green hydrogen production, carbon capture, use and storage (CCUS), and to reduce global methane emissions in 2030 by 30% (compared to 2020 levels), in order to reach its target of 50% renewable energy in the production capacity by 2030.