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NEOM Completes Deals Worth $8.4 Bln on World's Largest Carbon-Free Hydrogen Plant

NEOM Green Hydrogen Company (NGHC) announced that it has now completed financial deals on the world's largest green hydrogen production facility, with a total investment value of USD 8.4 billion. (SPA)
NEOM Green Hydrogen Company (NGHC) announced that it has now completed financial deals on the world's largest green hydrogen production facility, with a total investment value of USD 8.4 billion. (SPA)
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NEOM Completes Deals Worth $8.4 Bln on World's Largest Carbon-Free Hydrogen Plant

NEOM Green Hydrogen Company (NGHC) announced that it has now completed financial deals on the world's largest green hydrogen production facility, with a total investment value of USD 8.4 billion. (SPA)
NEOM Green Hydrogen Company (NGHC) announced that it has now completed financial deals on the world's largest green hydrogen production facility, with a total investment value of USD 8.4 billion. (SPA)

NEOM Green Hydrogen Company (NGHC) announced on Monday that following signing financial documents with 23 local, regional, and international banks and investment firms, it has now completed financial deals on the world's largest green hydrogen production facility, with a total investment value of USD 8.4 billion.

The plant is currently being built at Oxagon, in Saudi Arabia's NEOM region. NGHC has concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility.

Additionally, NGHC announced that the non-recourse financing structured for the project has been certified by S&P Global (as the second-party opinion provider) as adhering to green loan principles and is one of the largest project financings put in place under the green loan framework. Air Products has already awarded major contracts to various technology and construction partners.

NGHC also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which will unlock the economic potential of renewable energy across the entire value chain.

An equal joint venture between ACWA Power, Air Products, and NEOM, NGHC's mega-plant will integrate up to 4GW of solar and wind energy to produce up to 600 tons per day of carbon-free hydrogen by the end of 2026, in the form of green-ammonia as a cost-effective solution for the global transportation and industrial sectors.

NEOM Chief Executive Officer and NGHC Chairman Nadhmi Al-Nasr said: "This substantial financial backing from the investment community shows the unmatched potential of NGHC's green hydrogen project. With the financial close announced today, we are taking a massive leap towards opening the plant, in line with NEOM's vision to accelerate renewable solutions."

"At scale, this project is the first-of-its-kind internationally, leading the world in the hydrogen revolution. Harnessing the energy of NEOM's abundant natural resources, NGHC's project will pave the way for the large-scale adoption of green hydrogen while driving Saudi Vision 2030's sustainable development goals," he added.

Chief Executive Officer of NGHC, David R. Edmondson said: "I'm excited to announce that NGHC, together with our three partners ACWA Power, Air Products, and NEOM, has achieved another significant milestone in our project by achieving financial close on the world's largest green hydrogen plant with 23 banks and investment firms."

"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 USD 6.7 billion," he stressed.

"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," he said.

"We are grateful for the significant support and commitment of our shareholders and the investment community to achieve project financing at this scale and look forward to leading the charge on the global transition to a carbon-free future," he added.

Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi added: "Air Products is proud to be shaping the future of energy with first-mover projects like this one, providing clean hydrogen to the world in a sustainable way."

"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 decarbonization of these heavy-duty transportation and industrial sectors and will save the world about 5 million tons of carbon dioxide per year."

"As the primary EPC contractor and system integrator for the facility, we are proud of the significant progress made with engineering and have awarded all major subcontracts for the project. Land preparation is also complete, construction is well underway, and the joint-venture team is in place and actively executing to bring green energy to the world by the end of 2026," he stated.

ACWA Power Chairman Mohammad Abunayyan, added: "As an energy transition leader and Saudi national champion, ACWA Power is proud to support and facilitate the successful financial close of this iconic green hydrogen project, marking our continued commitment alongside our partners to Saudi Arabia's Vision 2030."

"We have a proven track record of leveraging innovative solutions and advanced technology to deliver clean, sustainable power at the lowest cost. With the combined experience of our global utility scale renewable projects and innovative partners, we are making rapid strides towards the development of NGHC's giga-scale plant, integrating up to 4GW of renewable power from solar and wind energy to supply green hydrogen to global markets at scale," he remarked.

"This is a significant step forward in our shared purpose to accelerate the shift to clean energy and support the Kingdom's decarbonization goal," he said.

NGHC's financial agreements were concluded through a diverse mix of local, regional, and international banks and financial institutions, along-with a Euler Hermes tranche with no fewer than 23 institutions investing in the project in Oxagon.

In January, Saudi Arabia's Ministry of Industry and Mineral Resources awarded its first industrial operating license to NGHC, paving the way for the Kingdom to become the world's leading hydrogen producer, while maintaining its position as a key player in the energy sector.

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World Breathes Sigh of Relief as Trump Spares Fed, IMF

US President Donald Trump speaks to members of press onboard Air Force One on a flight to Fiumicino Airport near Rome to attend the funeral of Pope Francis, April 25, 2025. (Reuters)
US President Donald Trump speaks to members of press onboard Air Force One on a flight to Fiumicino Airport near Rome to attend the funeral of Pope Francis, April 25, 2025. (Reuters)
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World Breathes Sigh of Relief as Trump Spares Fed, IMF

US President Donald Trump speaks to members of press onboard Air Force One on a flight to Fiumicino Airport near Rome to attend the funeral of Pope Francis, April 25, 2025. (Reuters)
US President Donald Trump speaks to members of press onboard Air Force One on a flight to Fiumicino Airport near Rome to attend the funeral of Pope Francis, April 25, 2025. (Reuters)

Global policymakers gathering in Washington this week breathed a collective sigh of relief that the US-centric economic order that prevailed for the past 80 years was not collapsing just yet despite Donald Trump's inward-looking approach.

The Spring Meetings of the International Monetary Fund and the World Bank were dominated by trade talks, which also brought some de-escalatory statements from Washington about its relations with China.

But some deeper questions hovered over central bankers and finance ministers after Trump's attacks on international institutions and the Federal Reserve: can we still count on the US dollar as the world's safe haven and on the two lenders that have supported the international economic system since the end of World War Two?

Conversations with dozens of policymakers from all over the world revealed generalized relief at Trump’s scaling back his threats to fire Fed Chair Jerome Powell, the guardian of the dollar’s international status whom he had previously described as a "major loser".

And many also saw a silver lining in US Treasury Secretary Scott Bessent’s call to reshape the IMF and World Bank according to Trump's priorities because it implied that the United States was not about to pull out of the two lenders that it helped create at the Bretton Woods conference of 1944.

"This week was one of cautious relief," Austria's central bank governor Robert Holzmann said. "There was a turn (in the US administration's stance) but I fret this may not be the last. I keep my reservations."

A politicization of the Fed and, to a lesser extent, the hollowing out of the IMF and World Bank are almost too much to fathom for most officials.

Deprived of a lender of last resort, some $25 trillion of bonds and loans issued abroad would be called into question.

NO ALTERNATIVE

At the heart of policymakers' concerns is that there is no ready alternative to the United States as the world's financial hegemon - a situation that economists know as the Kindleberger Trap after renowned historian Charles Kindleberger.

To be sure, the euro, a distant-second reserve currency, is gaining popularity in light of the European Union's newly found status as an island of relative stability.

But policymakers who spoke to Reuters were adamant that the European single currency was not ready yet to dethrone the dollar and could at best hope to add a little to its 20% share of the world's reserves.

Of the 20 countries that share the euro only Germany has the credit rating and the size that investors demand from a safe haven.

Some other members are highly indebted and prone to bouts of political and financial turmoil - most recently in France last year - which raise lingering questions about the bloc's long-term viability.

And the euro zone's geographical proximity to Russia - particularly the three Baltic countries that were once part of the Soviet Union - cast an even more sinister shadow.

With Japan now too small and China's heavily managed currency in an even worse position, this left no alternative to the dollar system underpinned by the Fed and the two Bretton Woods institutions.

In fact, the IMF and the World Bank could scarcely survive if their largest shareholder, the United States, pulled out, officials said.

"The US is absolutely crucial for multilateral institutions," Polish Finance Minister Andrzej Domanski told Reuters. "We're happy they remain."

Still, few expected to go back to the old status quo and thorny issues were likely to await, such as widespread dependence on US firms for a number of key services from credit cards to satellites.

But some observers argued that the market turmoil of the past few weeks, which saw US bonds, shares and the currency sell off sharply, might have been a shot in the arm as it forced a change of tack by the administration.

"When President Trump talked about firing Jay Powell, the fact that markets reacted so vigorously to that ended up being a disciplining reality just reminding the administration that, if you cross that line, it could have some very severe implications," said Nathan Sheets, global chief economist at Citi.