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Cost of Neom green hydrogen project surges to $8.5 bn

 

Cost of Neom green hydrogen project surges to $8.5 bn

The cost of Saudi Arabia’s flagship Neom green hydrogen project has surged from the originally planned $5bn to $8.5bn.

Co-developer Air Products in its Q1 financial update has attributed this increase to inflation, spare parts, advance fees for land and $1bn of interest on loans.

Air Products is developing the project in the desert of northwest Saudi Arabia with partners ACWA Power, the Saudi renewables developer, and Neom.

The Neom green hydrogen mega-project looks forward to use enormous green power capacity of The Line, 170km-long glass-fronted ambitious city that will be home to one million people.

The company says inflation since 2020 has contributed an increase of $500mn in cost, while the other $3bn is spread between additional costs.

The green hydrogen project is projected to produce 1.2 million tons of green ammonia per year from 2.2GW of electrolyszers while using 4GW of wind, solar and battery storage.

Source: https://www.utilities-me.com/

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