NEOM Green Hydrogen Company (NGHC) has made a significant announcement today. After successfully signing financial documents with 23 local, regional, and international banks, as well as investment firms, NGHC has achieved financial close on what is now recognized as the world's largest green hydrogen production facility. This remarkable endeavor comes with a substantial total investment value of USD 8.4 billion. In a groundbreaking development, a state-of-the-art plant is currently under construction in the illustrious city of Oxagon, situated in the esteemed NEOM region of Saudi Arabia. NGHC, a prominent company, has recently finalized the engineering, procurement, and construction (EPC) agreement with Air Products. The esteemed Air Products has been selected as the designated contractor and system integrator for the entirety of the facility.
In a recent development, NGHC has made an announcement regarding the certification of their non-recourse financing for a project. The certification has been granted by S&P Global, which acted as the second-party opinion provider. This certification confirms that the financing adheres to green loan principles, marking a significant achievement for NGHC. Notably, this project financing stands as one of the largest to be implemented under the green loan framework. Air Products, the renowned industrial gases company, has recently made significant strides in its operations by awarding major contracts to a diverse range of esteemed technology and construction partners.
In a significant development, NEOM Green Hydrogen Company has successfully secured an exclusive 30-year off-take agreement with Air Products. This agreement encompasses all the green ammonia that will be produced at the facility. The implications of this agreement are far-reaching, as it has the potential to unlock the economic benefits of renewable energy throughout the entire value chain.
In a groundbreaking collaboration, ACWA Power, Air Products, and NEOM have joined forces to establish a remarkable equal joint venture. This venture, known as NGHC, is set to revolutionize the energy landscape. By harnessing the power of solar and wind energy, NGHC's mega-plant aims to integrate an impressive 4 GW of renewable energy. The ultimate goal? To produce a staggering 600 metric tons per day of carbon-free hydrogen by the year 2026. This ambitious endeavor will take the form of green ammonia, a highly efficient and environmentally friendly solution that holds immense potential for the transportation and industrial sectors on a global scale. NGHC's vision is to provide a cost-effective alternative that will not only reduce carbon emissions but also pave the way for a sustainable future. With the combined expertise and resources of ACWA Power, Air Products, and NEOM, this joint venture is poised to make a significant impact in the realm of clean energy. By harnessing the power of nature and leveraging cutting-edge technology, NGHC is set to redefine the possibilities of hydrogen production and propel the world towards a greener and more sustainable future.
In a statement, Nadhmi Al-Nasr, the esteemed Chairman of NEOM Green Hydrogen Company and Chief Executive Officer of NEOM, expressed his thoughts.
The investment community's substantial financial backing for NGHC's green hydrogen project underscores its unparalleled potential. In a groundbreaking development, the financial close was officially announced today, marking a significant stride towards the imminent inauguration of the plant. This momentous achievement aligns perfectly with NEOM's overarching vision to expedite the adoption of renewable solutions.
In a groundbreaking development, this project has emerged as a trailblazer on a global scale, spearheading the hydrogen revolution. In a groundbreaking move, NGHC (National Gas and Healthcare Company) has unveiled a visionary project that aims to tap into NEOM's vast reserves of natural resources. This ambitious endeavor not only seeks to harness the energy derived from these resources but also paves the way for the widespread adoption of green hydrogen. By doing so, NGHC's project aligns perfectly with Saudi Vision 2030's sustainable development goals, marking a significant step towards a more sustainable future.
In a statement, NGHC's Chief Executive Officer, David R. Edmondson, expressed
NGHC, in collaboration with ACWA Power, Air Products, and NEOM, has reached a momentous achievement in their project as they secure financial close on the largest green hydrogen plant globally. This remarkable feat involved the participation of 23 prominent banks and investment firms.
In a moment that will undoubtedly go down in history, the global community is embarking on a groundbreaking endeavor to promote widespread utilization of green hydrogen as the ultimate answer to the ever-increasing global energy needs. In a significant development, we have successfully reached a conclusion on the EPC agreements with Air Products, amounting to an impressive value of USD6.7 billion. In a remarkable development, construction is currently in full swing for what is set to become the largest green hydrogen production facility in the world. With an ambitious timeline, the facility is expected to commence operations by the end of 2026.
The company expresses gratitude for the substantial backing and dedication of its shareholders and the investment community in securing project financing of such magnitude. They eagerly anticipate spearheading the worldwide movement towards a future devoid of carbon emissions.
In a recent statement, Seifi Ghasemi, the esteemed Chairman, President, and Chief Executive Officer of Air Products, made an important addition.
Air Products, a leading company in the energy sector, takes great pride in its role as a pioneer in shaping the future of energy. With groundbreaking projects like the one at hand, the company is committed to providing the world with clean hydrogen in a sustainable manner. Air Products has secured the exclusive rights to purchase and utilize the entire production output of green hydrogen at the NGHC facility. This green hydrogen will be converted into green ammonia and will be primarily used to cater to the global mobility and industrial sectors. In a groundbreaking move towards decarbonization, the production and exportation of green ammonia are set to revolutionize the heavy-duty transportation and industrial sectors. This innovative approach is projected to result in a significant reduction of approximately five million metric tons of carbon dioxide emissions annually, marking a substantial step forward in the global fight against climate change.
The primary EPC contractor and system integrator for the facility have expressed pride in the substantial progress achieved in the field of engineering. Additionally, they have successfully awarded all major subcontracts for the project. With land preparation now finalized, construction progressing smoothly, and a fully assembled joint venture team, the ambitious mission to deliver sustainable green energy to the global community by the close of 2026 is steadily taking shape.
In a recent statement, Mohammad Abunayyan, the esteemed Chairman of ACWA Power, made an important addition to the ongoing discussion.
ACWA Power, a prominent player in the energy transition sector and a national champion of Saudi Arabia, has expressed its pride in backing and facilitating the momentous financial close of a groundbreaking green hydrogen project. This significant development underscores ACWA Power's unwavering dedication, in collaboration with its esteemed partners, to Saudi Arabia's ambitious Vision 2030. With a proven track record, our company has successfully utilized innovative solutions and advanced technology to provide clean and sustainable power at the most affordable rates possible.
NGHC, a leading player in the renewable energy sector, is making significant progress in the development of its ambitious giga-scale plant. Leveraging their extensive experience in global utility-scale renewable projects and strategic partnerships with innovative companies, NGHC aims to integrate an impressive 4 GW of renewable power from solar and wind energy. The primary objective of this endeavor is to produce green hydrogen on a massive scale, catering to the growing demand in global markets. In a remarkable development, the individual expressed their belief that this particular action represents a noteworthy advancement in our collective endeavor to expedite the transition towards sustainable energy sources.
Furthermore, they emphasized the importance of this initiative in aiding the Kingdom's ambitious decarbonization objectives. In a stunning turn of events, the user has requested that their text be rewritten in the style of a journalist. This unexpected request has left many wondering about the motivations behind such a NGHC's financial agreements have been successfully finalized, thanks to a wide range of banks and financial institutions from both local and international sectors. Notably, the project located at Oxagon in Saudi Arabia's NEOM region has attracted investment from a significant number of institutions, totaling no less than 23. Additionally, an Euler Hermes tranche has also contributed to the funding of this venture.
In a significant development, Saudi Arabia's Ministry of Industry and Mineral Resources has recently granted NGHC its inaugural industrial operating license. This groundbreaking move sets the stage for the Kingdom to emerge as the global frontrunner in hydrogen production, all the while solidifying its prominent role in the energy industry.