Saudi Arabia’s $8.4 billion NEOM green hydrogen and green ammonia project is now formally under construction and is expected to be completed by the end of 2026, ACWA Power Co. said in a filing to the Tadawul stock exchange on July 7.
The company’s affiliate, NEOM Green Hydrogen Co. (NGHC), issued a full award notice to proceed (NTP) to the engineering, procurement, and construction (EPC) contractor, which has been approved, ACWA Power said.
NGHC in May reported that it had concluded the EPC contract at a value of $6.7 billion, with US-based Air Products as the nominated contractor and system integrator for the entire facility (GM May 26, p. 32). Air Products has also awarded major contracts to various technology and construction partners.
NGHC is an equal joint venture between ACWA Power, Air Products, and NEOM (GM July 10, 2020). The mega-plant will integrate up to 4GW of solar and wind energy to produce up to 600 mt/d of carbon-free hydrogen in the form of green ammonia. Air Products and NGHC earlier reached an exclusive 30-year agreement for Air Products to offtake all the green ammonia produced at the facility.
Following last week’s NTP, ACWA Power’s SAR1.125 billion ($300 million) contribution to the limited notice to proceed (LNTP) will convert into its equity in the project. According to the statement, all project agreements have been signed, and all shareholding partners have agreed to manage certain execution risks related to the EPC contract.
NGHC reported in May that it had achieved financial close for the project, which will be built at Oxagon in Saudi Araboa’s NEOM region. When fully operational, the plant will be the world’s largest green hydrogen production facility to date.