Saudi's NEOM eyes global green hydrogen market with $5bln JV

Air Products would be the exclusive off-taker of the green ammonia produced at the facility

  
Image used for illustrative purpose. Tall metal towers at a British oil refinery and petrochemical plant.

Image used for illustrative purpose. Tall metal towers at a British oil refinery and petrochemical plant.

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Saudi companies NEOM and ACWA Power have signed an agreement with US-based industrial gases company, Air Products, to set up a $5 billion green hydrogen-based ammonia production facility powered by renewable energy in the kingdom.

The equally owned joint venture would be located within the NEOM master development in north-west Saudi Arabia, and produce green ammonia for export to global markets, Air Products said in a press statement.

Saudi's NEOM aims to develop a $500 billion economic zone and will be owned by the government’s Public Investment Fund.

Air Products would 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, the statement said, adding that the project is scheduled come onstream in 2025.

The project, which has been billed as the world's largest renewable hydrogen project, would be a cornerstone of NEOM's strategy to become a major player in the global hydrogen market, according to the statement.

The project involves the integration of over four gigawatts of renewable power from solar, wind and storage; production of 650 tonnes 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 tonnes per year of green ammonia using Haldor Topsoe technology.

Sefi Ghasemi, Chairman, President and Chief Executive Officer for Air Products said the project would harness "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," he said.

Mohammad A Abunayyan, ACWA Power Chairman, said the project would be based in NEOM's Industrial Cluster and integrate and localise cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.

NEOM CEO Nadhmi Al Nasr added that the project would be a milestone for NEOM in becoming a global leader in green hydrogen production and green fuels.

(Writing by Anoop Menon; editing by Seban Scaria)

anoop.menon@refinitiv.com

#Saudi #NEOM #JV #Renewable Energy

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