Air Products, in collaboration with ACWA Power and NEOM, announced the signing of an agreement to develop a $5 billion (~₹372.7 billion) green hydrogen-based ammonia production facility powered by renewable energy.

According to the release, the worlds’ largest green hydrogen project will supply 650 tons of carbon-free hydrogen for transportation globally and will save the world three million tons of carbon dioxide annually.

The project will be equally owned by all the three members and will be located at NEOM in the northwest corner of Saudi Arabia. The project aims to produce green ammonia for export to global markets by 2025.

Speaking on the collaboration, Seifi Ghasemi, President and CEO of Air Products, said, “We are honored and proud to partner with ACWA Power and NEOM and use proven technologies to make the world’s dream of 100% green energy a reality. 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 CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.”

The press statement further said that the joint venture project would help in NEOM’s strategy to become a global player in the global hydrogen market. The project would include the integration of 4 GW of renewable power from solar, wind, and storage and will produce nearly 650 tons of hydrogen per day by electrolysis using Thyssenkrupp technology. The project will also produce nitrogen by air separation method using Air Products technology, and it will produce 1.2 million tons of green ammonia using Haldor Topsoe technology.

As per the release, Air Products will be the main purchaser of green ammonia, and it plans to export it to the world to be turned into green hydrogen for the transportation market.

Air Products is an industrial gas company and says it is the largest supplier of hydrogen worldwide. NEOM is a region located in the northwest part of Saudi Arabia. According to its website, NEOM would include towns and cities, ports and enterprise zones, research centers, sports and entertainment venues, and tourist destinations. It will be the home and workplace for more than a million citizens from around the world. ACWA Power is a developer, investor, and operator of power generation and desalinated water production plants.

Previously, ACWA Power signed a power purchase agreement with the government of Egypt to finance, develop, construct, and operate the 200 MW Kom Ombo solar power project. ACWA Power had secured this project through a tender issued in August 2018. The solar power is likely to be operational by the first quarter of 2021.

Last year, ACWA Power signed an agreement with Silk Road Fund for a 49% stake in the company. With this agreement, the Silk Road Fund became the official partner and shareholder in ACWA Power Renewable Energy Holding Ltd.