Acwa Power, a global utility project developer, has announced that construction is currently underway on its ambitious green hydrogen facility at Oxagon in the futuristic city of NEOM, Saudi Arabia. The project is expected to be completed by the end of 2026, reports Trade Arabia.
The NEOM Green Hydrogen Company (NGHC), a joint venture between Acwa Power, Air Products (a leading US industrial gases company), and NEOM, is spearheading this mega project with a total investment of $8.4 billion. Once operational, it will be the largest green hydrogen production facility in the world.
Haldor Topsoe, a global leader in catalysis and chemical processing, will play a significant role in the project by providing the technology for green ammonia production. Baker Hughes has been selected as the technology partner for hydrogen compression, while Air Products will leverage its own air separation technology.
NEOM plans to commence production of green hydrogen using 100% renewable energy sources in 2026
Acwa Power confirmed that NGHC has issued a full notice to proceed (NTP) to the EPC contractor Air Products, and the approval has been obtained. As a result, Acwa Power's contribution of SR1.125 billion ($300 million) in the Limited Notice To Proceed (LNTP) will now be considered part of its equity investment in the project. Furthermore, all project agreements have been executed, with shareholders agreeing to manage certain risks associated with engineering, procurement, and construction.
In May of this year, NGHC announced the signing of financial agreements with 23 local, regional, and international banks and investment firms.
NEOM plans to commence production of green hydrogen using 100% renewable energy sources in 2026. The plant aims to produce up to 1.2 million tonnes of green ammonia annually, equivalent to 600 tonnes of green hydrogen per day. This green ammonia will be exported to global markets, supporting the decarbonization of the heavy-duty transport sector and reducing carbon dioxide emissions.
The project is expected to have a significant environmental impact, with an estimated annual reduction of up to 5 million tonnes of CO2 emissions.