Financial close achieved for 4 GW Green Hydrogen project in Saudi Arabia

NEOM Green Hydrogen Company (NGHC) and its partners have achieved financial close on the green hydrogen production project in Saudi Arabia. The company signed financial documents with 23 local, regional, and international banks and investment firms to secure a total investment value of US$8.4 billion.

Currently being built at Oxagon, the plant is located in Saudi Arabia's region of NEOM. The non-recourse financing structured for the project has also been certified by S&P Global to adhere to green loan principles, and it is one of the largest project financings that fall under the green loan framework.

The mega-plant is an equal joint venture between Air Products, ACWA Power, and NEOM and is set to integrate up to 4 GW of solar and wind energy. The plant will produce up to 600 tonnes per day of carbon-free hydrogen, in the form of green ammonia, by the end of 2026. The goal is to provide a cost-effective solution for the global transportation and industrial sectors.

NGHC secured an exclusive 30-year off-take agreement with Air Products for all green ammonia produced at the facility. The project is expected to become operational by the year 2026.