
NEOM Green Hydrogen Company completes financial close at $8.4B in carbon-free green hydrogen plant
An investment value of 8.4 billion USD
The largest green hydrogen production facility in the world has now reached financial close, with a total investment value of USD 8.4 billion, according to NEOM Green Hydrogen Company (NGHC), which made the announcement after signing financial agreements with 23 local, regional, and international banks and investment firms.
The plant is currently being constructed at Oxagon, in the NEOM region of Saudi Arabia. The engineering, procurement, and construction (EPC) contract for the full facility has also been completed by NGHC with Air Products as the designated contractor and system integrator.
Additionally, NGHC disclosed that the project’s non-recourse financing structure, one of the largest project financings implemented under the green loan framework, has been approved by S&P Global (as the second party opinion provider) as adhering to green loan standards. Several technological and construction partners have already received significant contracts from Air Products.
NEOM Green Hydrogen Company and Air Products agreement
A 30-year exclusive off-take agreement between NEOM Green Hydrogen Company and Air Products for all of the green ammonia produced at the facility will enable renewable energy to reach its full economic potential throughout the whole value chain.
By the end of 2026, NGHC’s mega-plant, a joint venture in equal parts between ACWA Power, Air Products, and NEOM, will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes of carbon-free hydrogen per day in the form of green-ammonia as a competitive solution for the global transportation and industrial sectors.
A 30-year exclusive off-take agreement between NEOM Green Hydrogen Company and Air Products for all of the green ammonia produced at the facility will enable renewable energy to reach its full economic potential throughout the whole value chain.
600 tonnes of carbon-free hydrogen per day
By the end of 2026, NGHC’s mega-plant, a joint venture in equal parts between ACWA Power, Air Products, and NEOM, will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes of carbon-free hydrogen per day in the form of green-ammonia as a competitive solution for the global transportation and industrial sectors.
This significant financial support from the investing community, according to Nadhmi Al-Nasr, Chairman of the NEOM Green Hydrogen Company and Chief Executive Officer of NEOM, “shows the unmatched potential of NGHC’s green hydrogen project.” With the announcement of the financial close, we are moving forward with the plant’s launch in accordance with NEOM’s goal to speed up the development of renewable energy sources.
“At this size, the project is a first of its sort globally, driving the hydrogen revolution. In addition to advancing Saudi Vision 2030’s sustainable development objectives, NGHC’s project will pave the road for the widespread adoption of green hydrogen by harnessing the energy of NEOM’s enormous natural resources.
“I’m excited to announce that NGHC, along with our three partners ACWA Power, Air Products, and NEOM, has achieved another significant milestone in our project by achieving financial close on the world’s largest green hydrogen plant with 23 banks and investment firms,” said David R. Edmondson, Chief Executive Officer of NGHC.
We have a proven track record of leveraging innovative solutions and advanced technology to deliver clean, sustainable power at the lowest cost
“As we push for widespread acceptance of green hydrogen as the sustainable response to the developing world’s energy needs, this is a historic time. Due to this, we were also able to complete the EPC agreements with Air Products, which were worth USD 6.7 billion. The construction of the largest facility in the world to manufacture green hydrogen at scale is now well under way, and production is expected to start by the end of 2026.
“We are thankful for the substantial support and dedication of our shareholders and the investment community to achieve project financing at this scale and look forward to leading the charge on the global transition to a carbon-free future,” the statement reads.
“Air Products is proud to be shaping the future of energy with first-mover projects like this one, providing clean hydrogen to the world in a sustainable manner,” said Seifi Ghasemi, chairman, president, and chief executive officer of Air Products.
The future of green hydrogen by the end of 2026
The NGHC facility produces green hydrogen in the form of green ammonia, and Air Products is the sole off-taker and will absorb the whole output volume to supply the industrial and global transportation markets.
The production and sale of green ammonia helps to decarbonize these heavy-duty transportation and industrial sectors and will reduce global carbon dioxide emissions by around five million tonnes annually.
We are happy of the considerable engineering progress made and have awarded all significant subcontracts for the project as the prime EPC contractor and system integrator for the facility.
By the end of 2026, green energy will be available throughout the world thanks to land preparation that is finished, construction that is well under way, and a joint venture team that is in place and working hard.
The chairman of ACWA Power, Mohammad Abunayyan, stated: “ACWA Power is proud to support and facilitate the successful financial close of this iconic green hydrogen project, marking our continued commitment, along with our partners, to Saudi Arabia’s Vision 2030. ACWA Power is a leader in the energy transition and a Saudi national champion.
We have a track record of using cutting-edge technology and creative ideas to provide clean, renewable power at the lowest possible cost.
We are moving quickly towards the development of NGHC’s giga scale plant, integrating up to 4GW of renewable power from solar and wind energy to supply green hydrogen to global markets at scale.
This is thanks to the combined experience of our global utility scale renewable projects and innovative partners. This is a big step in the direction of our shared goals of accelerating the switch to sustainable energy and assisting the Kingdom’s decarbonization objectives.
Saudi Arabia is the world’s top producer of green hydrogen
A varied group of local, regional, and international banks and financial institutions, as well as an Euler Hermes tranche with no less than 23 institutions investing in the project, which is located at Oxagon in Saudi Arabia’s NEOM region, were involved in the financial agreements for NGHC.
The Saudi Arabian Ministry of Industry and Mineral Resources granted NGHC its first industrial operating license earlier in January 2023, opening the door for the Kingdom to overtake other nations as the world’s top producer of hydrogen while retaining its status as a significant participant in the energy industry.
Source: ACWA Power