Saudi Arabia’s NEOM Green Hydrogen Company Signs US$8.4B Investment Financing Agreement

Jakarta –

NEOM Green Hydrogen Company (NGHC) of Saudi Arabia has signed an investment financing agreement for a hydrogen production facility worth US$ 8.4 billion or around IDR 125.2 trillion (exchange rate of IDR 14,911) on Monday (22/5). These agreements were signed with 23 local, regional, international banks and investment companies.

Later, the factory will be built in Oxagon, part of the NEOM region, Saudi Arabia. Reported ReutersWednesday (24/5/2023), NGHC which is a joint venture between ACWA Power, Air Products and NEOM will produce 600 tons of carbon-free hydrogen per day by the end of 2026. In its production, 4 giga watts of solar energy will be used.

On the other hand, the company said it had completed a US$6.7 billion agreement with Air Products for the plant’s engineering, procurement and construction. The company has also secured a 30 year exclusive off-take agreement with Air Products for all green ammonia to be produced.

Reported Arab NewsThe National Development Fund (NDF) will also help finance the world’s largest hydrogen plant project through the entities it oversees, namely The Saudi Industrial Development Fund (SIDF) and the National Infrastructure Fund (NIF) together with local and international banks .

The NDF aims to save Saudi Arabia’s development by transitioning Saudi Arabia towards a vision of 2030 and net zero in 2060. This is part of the kingdom’s vision for a cleaner and greener future.

In assisting Saudi Arabia’s transformation towards the 2030 vision, the NDF will inject more than US$152 billion to boost the private sector and increase its contribution to GDP from 40% to 65%. In addition, increasing 3 times the contribution of non-oil exports to non-oil GDP from 16% to 50%.

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