Acwa Power has announced that work is currently underway on a green hydrogen facility at Oxagon – a site located within Saudi’s futuristic city Neom and is due for completion by December 2026.
The mega project, being developed by NEOM Green Hydrogen Company (NGHC) – a joint venture between Acwa Power, US industrial gases leader Air Products and NEOM – at a total investment value of $8.4bn, is set to become the largest green hydrogen production facility in the world.
NGHC has issued a full notice to proceed (NTP) to the EPC contractor, Air Products, which has now been approved, and filing to the Saudi bourse Tadawul is complete.
Following this development, Acwa Power’s $300mn contribution in the Limited Notice To Proceed (LNTP) will now be considered as part of its equity contribution in the project. In May, NGHC had previously announced the signing of financial deals with 23 local, regional, and international banks and investment firms.
According to NEOM, the NGHC plant will start producing green hydrogen from 100% renewable energy sources in 2026, with production of up to 1.2m tonnes of green ammonia annually – a figure equivalent to 600 tonnes of green hydrogen per day.
This green ammonia will be exported to global markets, supporting the decarbonisation of the heavy-duty transport sector and aimed at reducing carbon dioxide emissions. It is estimated that as a direct impact of the plant, up to five million tonnes of CO2 will be saved per year.
