Gulf Construction Online - $5bn green hydrogen plant planned in Neom

Saudi Focus

Neom ... the new project will harness the unique profile of the city’s sun and wind to convert water to hydrogen.

$5bn green hydrogen plant planned in Neom

01 August 2020

Air Products, Acwa Power and Neom have signed an agreement to set up a $5-billion world-scale green hydrogen-based ammonia production facility powered by renewable energy in Saudi Arabia.

The project, which will be equally owned by the three partners, will be sited in Neom, a new model for sustainable living located in the northwest corner of the kingdom, and will produce green ammonia for export to global markets.

The joint venture project is the first partnership for Neom with leading international and national partners in the renewable energy field and it will be a cornerstone for its strategy to become a major player in the global hydrogen market.

It is based on proven, world-class technology and will include the innovative integration of over four gigawatts of renewable power from solar, wind and storage; production of 650 tons per day of hydrogen by electrolysis using thyssenkrupp technology; production of nitrogen by air separation using Air Products technology; and production of 1.2 million tons per year of green ammonia using Haldor Topsoe technology. The project is scheduled to be onstream in 2025.

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

“We are honoured and proud to partner with Acwa Power and Neom and use proven technologies to make the world’s dream of 100 per cent green energy a reality,” said Seifi Ghasemi, Chairman, President and Chief Executive Officer for Air Products. “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 carbon dioxide (CO2) emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.”

Mohammad A Abunayyan, Acwa Power Chairman, said: “Stemming from our belief in Vision 2030 and HRH Crown Prince Mohammed bin Salman’s aspirations for Neom to become the global pioneer in sustainable living, the Board of Directors and Management of Acwa Power are proud to take part in this groundbreaking and first-of-its-kind investment in the world.

“Acwa Power has a proven track record of leveraging pioneering renewable technologies to deliver carbon-free power at the lowest cost. 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. Based in Neom’s Industrial Cluster, and enabled by its unique mandate, this investment will integrate and localize cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.”

Neom CEO Nadhmi Al Nasr said: “This partnership reflects our deep commitment to developing a carbon-positive society which will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world. This demonstrates the ability of Neom to generate significant partnership opportunities for international and national investors.