Project NEOM is in Full Swing
From：
Zhonglin International Group Date：11-09 1087 Belong to：Industry Related
On November 7, 2023, NEOM (Saudi New Future City) located in the Tabuk Province of northwestern Saudi Arabia is in full swing installing wind turbines to build its planned green hydrogen park project. It is reported that NEOM is located in the Tabuk Province in northwestern Saudi Arabia and is a "future city" under construction. It is expected to cover an area of 26500 square kilometers and is situated on the Red Coast at the border of Saudi Arabia, Jordan, Israel, and Egypt. NEOM is committed to creating an unprecedented urban living experience and sustainable development model, and will rely entirely on new energy for power supply in the future. The city building plan was proposed by Saudi Arabian Crown Prince Mohammad bin Salman, who described this modern new city as a "place for global dream chasers".
The green hydrogen plant of NEOM Green Hydrogen Corporation (NGHC) is located in the newly designed and planned emerging industrial city of Oxford within NEOM (Saudi New Future City). It is understood that NGHC is a joint venture established by Saudi ACWA Power, US Air Products, and NEOM New City, and is currently constructing the world's largest green hydrogen based ammonia production plant using renewable energy as a power source. After completion in the future, Oxagon will become a 100% zero carbon city driven entirely by clean energy, operated using robots and artificial intelligence, thanks to its strategic location near the Suez Canal. Ultimately, it will integrate up to 4GW of photovoltaic and wind energy projects, producing over 600 tons of carbon free hydrogen gas per day. With the construction of the grand blueprint for a clean industrial city and the continuous acceleration of NEOM project construction, the Aqaba Bay Port is also continuously expanding its throughput capacity to meet the growing import and export volume of goods, accelerate the import and export of various raw materials and equipment, and become a catalyst for the economic development of the region.
The NEOM plant area is planned to be fully operational in 2026. By then, through an exclusive long-term agreement with Air Products, headquartered in Arlington, Pennsylvania, USA, the 100% green hydrogen produced by the project will be exported to the global market in the form of green ammonia, creating another latest energy export product for Saudi Arabia. There is a close production and application relationship between green hydrogen and green ammonia. The direct raw materials for the production of green ammonia are green hydrogen and nitrogen in the air, and green ammonia can become a storage and transportation carrier for green hydrogen.
David R. Edmondson, NGHC's CEO, said, "We have continued to make significant progress in the construction process of the project, and the entire project is expected to begin exporting green hydrogen in 2026. This is an important milestone for NGHC on its journey to become a global leader in the green hydrogen industry, as well as a significant step forward for Saudi Arabia and other countries around the world. This means that green hydrogen energy will contribute to the energy transformation of countries around the world in a broader region."
Wolfgang Brand, Vice President of NEOM Green Hydrogen Project at Air Products in the United States, stated, "As the main engineering, procurement, and construction (EPC) for this project,..." The supplier, Air Products, is making significant progress in building NGHC large-scale green hydrogen factories and will soon provide clean energy in bulk to countries around the world. Our team and subordinate subcontractors have fully entered the project site, and with a series of equipment delivery companies continuing in the coming months, various project sites have begun to rapidly take shape.
Vishal Wanchoo, CEO of Oxagon Industrial City, said, "The arrival of NEOM Green Hydrogen Corporation (NGHC)'s first large-scale equipment is an important milestone for Oxagon's project construction. We are working hard to build an advanced and clean industrial ecosystem, and we are continuously strengthening our operational capabilities and strengthening Aqaba." The throughput capacity of the bay port. We are pleased to see the project construction work in full swing and progressing rapidly throughout the entire Oxagon Industrial New City.
Historical data shows that in May 2023, NGHC successfully completed comprehensive financing with a total investment of $8.4 billion, including $6.1 billion in non recourse financing from 23 local, regional, and international banks and financial institutions. The total financing amount this time includes $5.852 billion in senior bonds and $475 million in mezzanine debt financing, both of which are involved in non recourse project financing, as shown below: $1.5 billion representing the Saudi National Infrastructure Fund (NIF) and the Saudi National Development Fund (NDF); 1.25 billion US dollars from the Saudi Industrial Development Fund (SIDF). The remaining funds come from a consortium organization, with financing parties including: First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Mitsubishi UFJ Financial Group, BNP Paribas, Abu Dhabi Commercial Bank, Natixis, Saudi British Bank, Sumitomo Mitsui Bank, Saudi National Bank, and KfW Riyad Bank, the largest financial institution in Saudi Arabia, The Norincukin Bank of Japan, Mizuho Bank of Japan, Banque Saudi Fransi, Alinma Bank of Saudi Arabia, APICORP, JPMorgan Chase Bank of the United States, DZ Bank AG, the German Central Cooperative Bank Korea Development Bank and Credit Agricole.
Earlier this year, NGHC also signed an EPC agreement worth $6.7 billion with an air product company.
Finally, NGHC has also signed a 30 year exclusive purchase agreement with the Air Products Company for all green hydrogen products produced by the factory, which will maximize the commercial potential of renewable energy throughout the entire value chain.
