RIYADH: Saudi Arabia’s NEOM Green Hydrogen Company (NGHC) signed financial documents with 23 local, regional and international banks and investment firms on a green hydrogen production facility at a total investment value of $8.4 billion on Monday.
The plant is currently being built at Oxagon, in Saudi Arabia’s region of NEOM.
The National Development Fund (NDF) will contribute to financing the world's largest green hydrogen project, through its supervised entities: The Saudi Industrial Development Fund (SIDF) and the National Infrastructure Fund (NIF), along with local and international banks.
NDF aims to align Saudi Arabia’s development with Saudi Arabia’s transition to Vision 2030 and Net Zero by 2060, part of the Kingdom’s vision for a cleaner and greener future.
In assisting with the transformation of Saudi Arabia under Vision 2030, the NDF will inject more than SAR570 billion ($152 billion) to push the private sector and increase its contribution to GDP from 40 percent to 65 percent, and triple the contribution of non-oil exports to non-oil GDP from 16 percent to 50 percent.
NGHC, a joint venture between ACWA Power, Air Products and NEOM, will produce 600 tons a day of carbon-free hydrogen by the end of 2026 using 4 GW of solar energy, the statement said.
The company also said it concluded a $6.7 billion agreement with Air Products for the plant’s engineering, procurement and construction (EPC), securing an exclusive 30-year off-take agreement with Air Products for all the green ammonia it will produce.
* With Reuters