NEOM signs $5bn facility with ACWA Power, Air Products
Scheduled to be onstream by 2025, the facility will be the world’s largest green hydrogen project
Saudi Arabia gigaproject NEOM has signed a $5bn agreement with Air Products and ACWA Power for a production facility that will be the world’s largest green hydrogen project.
Powered by renewable energy, the facility is scheduled to be onstream in 2025 and will supply 650 tonnes per day of carbon-free hydrogen for transportation globally. It will also save the world three million tonnes per year of carbon dioxide.
The joint venture (JV) project, which will be equally owned by all three partners, is the first partnership for NEOM in the renewable energy field and forms part of its strategy to become a major player in the global hydrogen market.
NEOM’S chief executive officer, Nadhmi Al-Nasr, said this was a “pivotal moment” for the development of NEOM and a key element in Saudi Vision 2030 contributing to the kingdom’s clean energy and circular carbon economy strategy.
“This partnership reflects our deep commitment to developing a carbon positive society which will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world,” said Al-Nasr.
Air Products will use its technology to be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.
Air Products president, chairman and chief executive officer, Seifi Ghasemi, said this proven technology will make the “world’s dream of 100% green energy a reality”.
“Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars,” said Ghasemi.
ACWA Power chairman, Mohammad A. Abunayyan, concluded that they were confident that its collaboration with an industry-leading company like Air Products will create “significant opportunities” in the production of green hydrogen.