Saudi Arabia’s NEOM Green Hydrogen Company (NGHC) has announced the financial close of its green hydrogen production facility with an estimated value of $8.4 billion.

NGHC is a joint venture of ACWA Power, NEOM, and a U.S.-based international seller of gases and chemicals Air Products.

The mega plant will integrate up to 4GW of solar and wind energy to produce up to 600 tons of carbon-free hydrogen per day by the end of 2026 in the form of green ammonia as a cost-effective solution for the transportation and industrial sectors globally.

The plant is being built at Oxagon, in Saudi Arabia’s region of Neom.

Air Products will serve as the system integrator for the facility and carry out the engineering, procurement, and construction work.

The company announced the closure after signing financial documents with 23 local, regional, and international banks and investment firms.

NHGC also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility.

Chairman of NEOM Green Hydrogen Company Nadhmi Al-Nasr said, “At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM’s abundant natural resources, NGHC’s project will pave the way for the large-scale adoption of green hydrogen while driving Saudi Vision 2030’s sustainable development goals.”

In December 2022, Sweden-based Alfa Laval said it would deliver compact heat exchangers to NEOM’s green hydrogen plant in Saudi Arabia.

NGHC also announced that the non-recourse financing structure for the project has been certified by S&P Global as adhering to green loan principles and is one of the largest project financings under the green loan framework.

Chairman of ACWA Power Mohammad Abunayyan commented, “With the combined experience of our global utility-scale renewable projects and innovative partners, we are making rapid strides towards the development of NGHC’s giga scale-plant, integrating up to 4GW of renewable power from solar and wind energy to supply green hydrogen to global markets at scale.”

CEO of Air Products Seifi Ghasemi said, “Producing and exporting green ammonia supports the decarbonization of these heavy-duty transportation and industrial sectors and will save the world about five million tons of carbon dioxide per year. Land preparation is also complete, construction is well underway, and the joint venture team is in place and actively executing to bring green energy to the world by the end of 2026.”

In October last year, ACWA Power and Korea Electric Power Corporation signed a memorandum of understanding to develop green hydrogen and green ammonia projects in the Middle East and other geographies.