Neom has reached financial close on the world’s largest green hydrogen facility, worth $8.4 billion. The plant is being built at Oxagon.
Neom Green Hydrogen signed financial documents with 23 banks, ranging from local to international.
The financial commitments show the “unmatched potential” of the green hydrogen project, Neom Green Hydrogen chairman Nadhmi Al-Nasr said. “With the financial close announced today, we are taking a massive leap towards opening the plant, in line with NEOM’s vision to accelerate renewable solutions.”
Air Products is building the facility. It has also signed on to an exclusive 30-year offtake agreement for the green ammonia produced at the plant.
The facility will produce up to 600 tonnes per day of green hydrogen by the end of 2026, powered by 4 GW of solar and wind energy.
Air Products is also working on receiving facilities in Europe. In November 2022 it set out plans, with Mabanaft, to build a green ammonia import facility in Hamburg. This project should start up in 2026.
Neom Green Hydrogen CEO David Edmondson said the project was driving adoption of green hydrogen. “This has enabled us to also conclude the EPC agreements with Air Products for a value of $6.7 billion. Today, we are already well underway building the world’s largest facility to produce green hydrogen at scale with production scheduled to begin by the end of 2026.”
S&P Global has certified the project as adhering to green loan principles, Neom reported. This makes it one of the largest project financings put in place under the green loan framework.
Neom awarded the design and build contract for its port, at the Oxagon city, last week to Besix Middle East, alongside MBL and Boskalis.
Besix reported it would design and construct more than 4.6 km of quay walls, under the contract worth 3 billion riyals ($800 million). The company said it should complete the work in mid-2025.
Boskalis will deepen and widen the access channel.
Neom has taken over the management of Duba Port from the national maritime authority, Mawani.
“The Port of Neom will be a critical enabler to the overall build, operations and economic ambitions of Neom – from the import of goods and materials during the development phase and as a new global port serving the region. This is particularly important as development accelerates and businesses across Neom come onstream,” said the port managing director Sean Kelly.