Neom inks deals to fund green hydrogen project

 

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/