- NGHC has secured financial support from a host of national and international lenders for its green hydrogen project in Neom
- It includes significant participation from SIDF and NIF of the Saudi government to help it achieve financial closure in early 2023
- The project will produce 600 tons green hydrogen per day, powered by 4 GW solar and wind, to generate green ammonia for exports
Several local, regional and international banks and financial institutions have pledged support for Neom Green Hydrogen Company (NGHC) that’s building what it terms as the world’s ‘largest green hydrogen production facility in Saudi Arabia’s sustainable city project Neom.
The project is aimed at producing up to 600 tons of green hydrogen per day that will be used to generate up to 1.2 million tons of green ammonia by 2026. All of the produced green fuels will be exported as ammonia by US gas and chemicals company Air Products under an exclusive long-term agreement (see Green Hydrogen Project Powered By Over 4 GW RE).
It is being built under a joint venture (JV) between Air Products, Saudi Arabia’s ACWA Power and the City of Neom with Germany’s Thyssen Krupp supplying the electrolysis plant for the massive project.
While NGHC doesn’t reveal the financing in concrete terms, it said there is a significant participation from the Saudi Industrial Development Fund (SIDF) and the National Infrastructure Fund (NIF). It will enable the company to achieve financial close in early 2023, stated NGHC CEO David R. Edmondson.
Neom is an ambitious project of the Saudi Arabian government that plans to build it as a new sustainable city in Tabuk province, on the coast of the Red Sea. It is envisioned to be fully powered by 15 GW renewable energy capacity by 2030 (see Neom Enters MoU With Saudi Arabian Energy Ministry).