Saudi's NEOM Inks Loan Deals for Green Hydrogen Project

World’s Largest Carbon-Free Hydrogen Plant Slated for Start-Up in 2026

Saudi Arabia’s NEOM Green Hydrogen Company, or NGHC, has signed several loan agreements with banks and investment firms for the world’s largest green hydrogen production facility.

NGHC, a joint venture between ACWA Power, Air Products and NEOM, said deals had been inked with local, regional and international banks as well as financial institutions including Saudi Industrial Development Fund, or SIDF, and the National Infrastructure Fund, or NIF.

The project, located at NEOM in northwestern Tabuk Province, is integrating 4 gigawatts of solar and wind energy to supply up to 600 tonnes per day of carbon-free hydrogen in the form of green ammonia.

The facility is slated for start-up by 2026. Hydrogen production will be available for global export through an exclusive long-term agreement with Air Products.

“NGHC has a clear mission: to leverage the expertise and vision of its partners to accelerate the global green hydrogen economy,” said David R. Edmondson, CEO at NGHC.

“The recent convening of the investment community in Riyadh is an important step towards the milestone of achieving financial close in early 2023, to deliver the world’s largest facility to produce green hydrogen at scale.”

NEOM itself is one of several giga-projects that Saudi Arabia is building from scratch as part of its 2030 masterplan to pivot the economy away from oil and gas towards more sustainable, private sector-driven industries.

The 26,500-square-kilometre business and logistics zone will house ports, industrial plants, sports stadiums, green energy facilities and a hi-tech, 170-kilometre-long smart city dubbed The Line. NEOM will also be home to the Oxagon project, a new port city billed as the world’s largest floating structure.

NEOM and Air Products are members of the Breakbulk Global Shipper Network, a worldwide group of shippers involved in the engineering, manufacturing and production of project cargo.

The opportunities stemming from Saudi Arabia’s giga-project drive will be discussed by a panel of logistics professionals during a main stage session at Breakbulk Middle East 2023, taking place on 13-14 February at the Dubai World Trade Centre, UAE.

The session will be moderated by Tina Benjamin-Lea, Air Products’ project logistics director for NEOM green hydrogen projects.

MAIN PHOTO: Sultan bin Khalid, deputy CEO, SIDF; David R. Edmondson. CREDIT: NGHC