NEOM Green Hydrogen (NGHC) has reached financial close on the green hydrogen production facility at Oxagon in Saudi Arabia’s region of NEOM with a total investment of $8.4bn.

In this regard, the company has signed financial documents with 23 local, regional, and international banks and investment firms for $6.1bn non-recourse funding.

Besides, NGHC has forged the engineering, procurement, and construction (EPC) agreement at a value of $6.7bn with industrial gases company Air Products.

Under the terms of the agreement, Air Products will be the nominated contractor and system integrator for the entire NEOM green hydrogen facility.

Furthermore, Air Products has signed an exclusive 30-year off-take agreement with NGHC for all the green ammonia generated at the NEOM green hydrogen facility.

Air Products chairman, president and CEO Seifi Ghasemi said: “Air Products is the exclusive off-taker and will absorb the full production volume of the green hydrogen produced in the form of green ammonia at the NGHC facility to serve global mobility and industrial markets.

“Producing and exporting green ammonia supports the decarbonisation of these heavy-duty transportation and industrial sectors and will save the world about five million tonnes of carbon dioxide per year.”

NGHC is an equal joint venture (JV) developed by renewable energy developer ACWA Power, Air Products and the NEOM sustainable living project.

The NEOM green hydrogen plant will integrate up to 4GW of solar and wind energy to generate up to 600 tonnes of carbon-free hydrogen in the form of green ammonia per day.

NGHC expects to commence the production of green ammonia at scale by the end of 2026.

The JV was awarded the industrial operating license by Saudi Arabia’s Ministry of Industry and Mineral Resources in January 2023.

NGHC CEO David Edmondson said: “This is a historic moment as we drive large-scale adoption of green hydrogen as the clean solution to the world’s growing energy demands.

“This has enabled us to also conclude the EPC agreements with Air Products for a value of $6.7bn. Today, we are already well underway building the world’s largest facility to produce green hydrogen at scale with production scheduled to begin by the end of 2026.”