NEOM's Green Hydrogen
Project enters execution phase with completion targeted for 2026
Saudi Arabia's NEOM
green hydrogen project has officially commenced construction and is anticipated
to be finalized by the end of 2026.
This was confirmed in
a statement released by ACWA Power to the Saudi stock exchange Tadawul on
Thursday.
ACWA Power's
subsidiary, NEOM Green Hydrogen Co (NGHC), has issued a comprehensive award
notice for the selection of the engineering, procurement, and construction
(EPC) contractor, which has received official approval.
Furthermore, ACWA
Power's initial investment of $300 million in the Limited Notice to Proceed
(LNTP) agreement will be converted into its equity in the project.
The statement also
affirmed that all project agreements have been successfully signed, with the partners
agreeing to manage specific risks associated with the EPC contract.
In December 2022, NGHC
announced Larsen & Toubro (L&T), an Indian contractor, as the sub-EPC
contractor for the massive green hydrogen plant in Saudi Arabia. Under the
terms of the contract, L&T will be responsible for executing power grid and
power generation activities for the plant on an EPC basis.
Once operational, the
hydrogen project, a collaboration between ACWA Power, Air Products, and NEOM,
is set to become the world's largest green hydrogen production facility. The
project aims to leverage cutting-edge technology and innovative solutions to
produce green hydrogen, contributing to the transition towards a more
sustainable energy future.
Source: https://www.oilandgasmiddleeast.com/
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