In a move towards producing carbon-free hydrogen using wind and solar energy, the Saudi government has completed its preparations for building the world’s largest plant in the “Neom” region in the northwest of the kingdom.
On Thursday, the Saudi-based company “Neom” for green hydrogen, which is a subsidiary of “Acwa Power”, announced the full award of the engineering, procurement, and construction contractor for the “Neom Green Hydrogen” project.
The plant is expected to start producing green hydrogen from 100% renewable energy sources by 2026, producing 1.2 million tons of green ammonia annually, equivalent to 600 tons of green hydrogen per day.
According to a statement by “Acwa Power” on the Saudi Stock Exchange, all agreements related to the project’s implementation have been signed, and all partners have agreed to manage and bear specific risks related to project implementation. Accordingly, the project is now under implementation.
“Acwa Power” clarified that its contribution of SAR 1.125 billion in the Limited Tender Agreement is a contribution from the project’s capital.
In February of last year, the Ministry of Industry and Mineral Resources issued the first license in the Oxygen zone for “Neom for Green Hydrogen”, a joint project between “Neom”, “Acwa Power”, and “Air Products”.
“Neom for Green Hydrogen” will be the world’s largest company for producing green hydrogen on a large scale, based in the Oxygen zone, the home of advanced and clean industries in Neom, with its automated and integrated supply and logistics network.
In May of last year, “Neom” completed the financial close for the project to build the world’s largest green hydrogen production plant with an investment of $8.4 billion, after signing financial documents with 23 local, regional, and international banks and investment companies.
According to the company, the plant is being built in the Oxygen city within the Neom region in Saudi Arabia, while an agreement has also been signed with “Air Products” to implement the engineering, procurement, and construction works, as it is the contracting company responsible for implementing these works and ensuring the integration of systems at the plant level in general.
The government is intensifying its efforts to exploit the kingdom’s low-cost hydrocarbon resources and its strategic location for renewable energy sources, as it works to stimulate the hydrogen economy through its targets to be among the world’s leading producer countries.
