Riyadh – Mubasher: ACWA Power Company has inked a limited notice to proceed (LNTP) agreement worth $900 million for NEOM Green Hydrogen project.

The six-month agreement, which was penned on 3 April, comes in line with the engineering, procurement, and construction (EPC) contract for the manufacture of green hydrogen-based ammonia in Saudi Arabia, according to a bourse filing.

Jointly developed by ACWA Power, Air Products, and NEOM, the project has a production capacity of nearly 1.20 million tonnes per annum of green ammonia.

Upon the LNTP deal, ACWA Power would receive $300 million as a maximum aggregate exposure if the financial close is never achieved and the project is abandoned.

It is worth noting that the Saudi listed company owns 33.30% of the NEOM Green Hydrogen Company, while Air Products and NEOM Company own 33.30% and 33.40%, respectively.

In 2020, Air Products, ACWA Power, and NEOM had signed a $5 billion deal to produce green ammonia for export to global markets.