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NEOM, ACWA Power, Air Products ink $5bn agreement

NEOM, ACWA Power, Air Products ink $5bn agreement
This is NEOM’s first partnership with leading renewable energy partners

Riyadh - Mubasher: Air Products has signed an agreement with ACWA Power, and NEOM for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy.

The project, equally owned by the three partners, will be based in Saudi Arabia’s new economic zone, NEOM, and will produce green ammonia for export to global markets, according to a press release on Tuesday.

Scheduled to be onstream in 2025, the joint venture (JV) project is NEOM’s first partnership with leading international and national partners in the renewable energy field.   

The world’s largest green hydrogen project will supply 650 tonnes per day of carbon-free hydrogen for transportation globally, the statement read.

Furthermore, Air Products will be the exclusive off-taker of the green ammonia and plans to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

“Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars,” said Air Products’ Chairman, President, and CEO, Seifi Ghasemi.

Moreover, ACWA Power Chairman, Mohammad A. Abunayyan, commented, “With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits.”

According to NEOM CEO, Nadhmi Al Nasr, this significant milestone reflects the company’s deep commitment to developing a carbon positive society and demonstrates the ability of NEOM to generate significant partnership opportunities for international and national investors.