KSA issues operating license for Neom green hydrogen project: Saudi’s Industry and Mineral Resources Ministry has issued an industrial operating license for the Neom Green Hydrogen Company (NGHC) — a JV between Neom, US-based gas supplier Air Products and Saudi Arabia’s Acwa Power, according to a statement last week. The NGHC plant is set to produce 1.2 mn tons of green ammonia annually, promising to be the world’s largest utility-scale green hydrogen facility.

Next stop: Financial close? The USD 5 bn green hydrogen project was expected to reach financial close in early 2023, but we have yet to see confirmation that it has reached this milestone. NGHC signed facility agreements with Saudi and international banks in December to secure operating capital, and we’re also expecting to see “significant participation” from the government.

A recap on the Neom green hydrogen plant: The plant will be powered by renewable energy projects totaling nearly 4 GW and is expected to begin hydrogen production in 2026. All of the green ammonia produced will be exported to global markets through a long-term offtake agreement with Air Products, the statement notes.

The technical partners: Air Products will construct the plant and supply its own air separation technology used in green ammonia production, while the 2.2 GW electrolysis technology used to produce the green hydrogen will be supplied by Thyssenkrupp Nucera, according to the statement. Denmark’s Topsoe will provide the technology to produce green ammonia, while Houston-headquartered Baker Hughes will be responsible for hydrogen compression.

Tadawul-listed Acwa Power intends to “replicate” the project elsewhere, to supply the “huge capacities” of green ammonia likely to be in demand, the company’s global head of hydrogen Andrea Lovato recently told the National. The “replicated” project will also produce 1.2 mn tons of green ammonia annually, Lovato said. No information on the potential investors, site location, or project cost has been announced yet.

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