Neom inks
deals to fund green hydrogen project
Neom
Green Hydrogen Company (NGHC) of Saudi Arabia has signed agreements
with financial institutions to invest in a green hydrogen production plant.
The
plant would be the world’s largest green hydrogen-based ammonia production facility
in Neom city. It will use 4 gigawatts of renewable power from alternative
sources of energy to produce 600 tonnes per day of hydrogen.
The
project, that will be functional
in 2026, is expected to produce about 1.2 million tonnes of green ammonia
per year.
“NGHC
has a clear mission: to leverage the expertise and vision of its partners to
accelerate the global green hydrogen economy,” David Edmondson, chief executive
of the company, said.
Saudi
Arabia is focusing heavily on renewable
energy in its quest to diversify away from oil exports, as well as to meet
its climate commitments.
Hydrogen
would play a key role in transition of economies and industries to a low-carbon
world.
It
comes in various forms, including blue, green and grey. Blue and grey hydrogen
are produced from natural gas, while green is derived from splitting water by
electrolysis.
Globally,
the hydrogen industry is expected to be worth $183 billion by 2023, up from
$129 billion in 2017, according to Fitch Solutions. French investment bank
Natixis estimates that investment in hydrogen will exceed $300 billion by 2030.
Source: https://www.thenationalnews.com/
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