NEOM green H2 project gains ground with arrival of 1st major equipment

Business Developments & Projects

November 7, 2023, by Aida Čučuk

NEOM Green Hydrogen Company (NGHC), a joint venture created by ACWA Power, Air Products and NEOM, has reached a milestone in the construction and development of the NEOM green hydrogen plant, by receiving its first delivery of wind turbines at the Port of NEOM in Northwest Saudi Arabia.

NEOM said the first set of wind turbines was delivered on October 8, 2023, and are now being transported via road to the Wind Garden site near the Gulf of Aqaba where they will be assembled and installed.

Additional turbines are expected to be delivered by the end of 2023, with NGHC’s Wind Garden said to ultimately feature more than 250 to directly power the green hydrogen plant via a dedicated electricity transmission grid.

To note, Envision Energy is manufacturing the wind turbines for the NGHC facility as a supplier to Air Products, NGHC’s EPC contractor.

David R. Edmondson, CEO of NGHC, stated: “This is the first of a series of major equipment deliveries arriving over the next year. We continue to make great progress since achieving financial close earlier this year and are on track to start exporting green hydrogen in 2026.”

Wolfgang Brand, Vice President, NEOM Green Hydrogen Project, Air Products, said: “As the main engineering, procurement and construction (EPC) partner on the project, Air Products continues to make great progress in building NGHC’s large-scale green hydrogen plant, which will deliver clean energy for the world on a massive scale. Our teams and contractors are fully deployed on-ground and with a series of equipment deliveries continuing in the coming months, the sites are really starting to take shape.”

Vishal Wanchoo, CEO of Oxagon, commented: “The arrival of the first major equipment for NGHC is a watershed moment for Oxagon as we build an advanced and clean industrial ecosystem; and a major milestone for the Port, as we continue to expand our operational capabilities. Across Oxagon, we are delighted to see production facilities of the future, such as NGHC, are rapidly advancing beyond the early groundworks phase of construction.”

According to NEOM, NGHC’s facility, located in Oxagon, NEOM’s reimagined industrial city, will integrate as much as 4 gigawatts of solar and wind energy to produce up to 600 tons of carbon-free hydrogen daily, adding that once the plant at NEOM is fully operational in 2026, 100% of the green hydrogen produced will be available for global export in the form of green ammonia, through an exclusive long-term agreement with Air Products.

At the beginning of 2023, NGHC achieved full financial close on the facility at a total investment value of $8.4 billion, including $6.1 billion in non-recourse financing from 23 local, regional and international banks and financial institutions. Moreover, the EPC agreements were concluded with Air Products at a value of $6.7 billion.

NGHC also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which is expected to unlock the economic potential of renewable energy across the entire value chain.