NEOM Green Hydrogen project takes a major leap forward

 

NEOM Green Hydrogen project takes a major leap forward

NEOM Green Hydrogen Company (NGHC), a strategic partnership comprising ACWA Power, Air Products, and NEOM, is making significant progress in its groundbreaking NEOM green hydrogen plant project. The delivery of the first set of wind turbines at the Port of NEOM in Northwest Saudi Arabia signals a pivotal moment in its construction and development.

NEOM announced that the initial shipment of wind turbines arrived on October 8, 2023, and is currently en route to the Wind Garden site near the Gulf of Aqaba. There, they will be assembled and installed, with additional turbines expected to arrive by the end of 2023. NGHC's Wind Garden is set to include more than 250 turbines, serving as a dedicated electricity transmission grid to power the green hydrogen plant.

 

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Envision Energy is the designated wind turbine supplier for the NGHC facility, contracted through Air Products, NGHC's engineering, procurement, and construction (EPC) partner.

David R. Edmondson, CEO of NGHC, emphasized, "This marks the commencement of a series of major equipment deliveries scheduled for the coming year. We remain committed to our timeline after reaching financial close earlier this year, aiming to commence green hydrogen exports by 2026."

Wolfgang Brand, Vice President of the NEOM Green Hydrogen Project at Air Products, highlighted their ongoing progress, stating, "As the principal EPC partner on this project, Air Products continues to make substantial headway in constructing NGHC's large-scale green hydrogen plant, which will contribute clean energy on a global scale. Our teams and contractors are working diligently on-site, and with several equipment deliveries ahead, the project sites are taking shape."

 

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Vishal Wanchoo, CEO of Oxagon, remarked on the significance of the first major equipment arrival, stating, "The arrival of the first major equipment for NGHC is a watershed moment for Oxagon as we build an advanced and clean industrial ecosystem and represents a major milestone for the Port as we expand our operational capabilities. Across Oxagon, we are thrilled to witness the rapid progress of future production facilities, such as NGHC, beyond the initial construction phase."

According to NEOM, the NGHC facility, located in Oxagon within NEOM's reimagined industrial city, will incorporate up to 4 gigawatts of solar and wind energy, generating up to 600 tons of carbon-free hydrogen daily. Once fully operational in 2026, the plant will make 100% of the green hydrogen available for global export in the form of green ammonia through an exclusive long-term agreement with Air Products.

 

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Earlier in 2023, NGHC achieved full financial close for the facility, with a total investment value of $8.4 billion, including $6.1 billion in non-recourse financing from 23 local, regional, and international banks and financial institutions. EPC agreements with Air Products were finalized at a value of $6.7 billion.

Additionally, NGHC secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, promising to unlock the economic potential of renewable energy throughout the entire value chain.

Source: https://www.offshore-energy.biz/