New agreement for green hydrogen production plant in NEOM

New agreement for green hydrogen production plant in NEOM

JEDDAH: A $5 billion production facility powered by renewable energy to supply 650 tons of carbon-free hydrogen daily for export to global markets is to be built at the main Neom site under a new agreement.

Air Products, a world-leading industrial gases company, and ACWA Power, a developer and operator of power generation and desalinated water production plants, signed the agreement with Neom to build the hydrogen-based ammonia production facility, which will be equally owned by the three partners. It aims to produce green ammonia for export to global markets by 2025.

The joint venture project is the first partnership for Neom, a new model for sustainable living located in the north west corner of the Saudi Arabia, with international and national partners in the renewable energy field. It will include the innovative integration of more than four gigawatts of renewable power from solar and wind power and storage using various methods of production.

"This partnership reflects our deep commitment to developing a carbon-positive society that will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world,“ said Nadhmi Al Nasr, Neom CEO.

"Neom's Board of Directors, headed by Crown Prince Mohammed bin