NEOM project reaches financial close, 30 year offtake secured
The renewable hydrogen & ammonia production facility will be built near Al Muwaileh, Saudi Arabia, with Air Products to act as the engineering, procurement, and construction contractor for the project ($6.7 billion total value). Air Products reports that all major subcontracts for the project have been awarded, with construction ongoing and engineering “30% complete”. By 2026, 4 GW of wind and solar energy will drive production of more than 200,000 tonnes of renewable hydrogen per year, or over 1.2 million tonnes of renewable ammonia.
Thirty years of exclusive ammonia offtake has been secured by Air Products, one of three equal partners in the NEOM Green Hydrogen Company (NGHC). In an earnings call earlier this year, Air Products revealed that – despite the project increasing in cost from its original $5 billion price tag – the offtake price for the renewable ammonia will remain the same as that negotiated in 2020, and for the full duration of the offtake.
