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

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.

Oil prices edged up on Monday after Chinese data showed a sharp rebound in crude imports in March, although concerns that the escalating trade war between the United States and China would weaken global economic growth and dent fuel demand weighed.
Brent crude futures gained 6 cents, or 0.09%, to $64.82 a barrel at 0632 GMT. US West Texas Intermediate crude futures were trading at $61.59 a barrel, up 9 cents, or 0.15%.
China's crude oil imports in March rebounded sharply from the previous two months and were up nearly 5% from a year earlier, data showed on Monday, boosted by a surge in Iranian oil and a rebound in Russian oil deliveries.
However, Brent and WTI have lost about $10 a barrel since the start of the month, and analysts have been revising down their oil price forecasts as the trade war between the world's two largest economies has intensified.
Goldman Sachs expects Brent to average $63 and WTI to average $59 for the remainder of 2025 and sees Brent averaging $58 and WTI $55 in 2026.
It sees global oil demand in the fourth quarter of 2025 rising by just 300,000 barrels per day year-on-year, "given the weak growth outlook," analysts led by Daan Struyven said in a note, adding that the demand slowdown is expected to be the sharpest for petrochemical feedstocks.
BMI, a unit of Fitch Solutions, cut its Brent price forecast to $68 from $76 a barrel for 2025 as it expects slowing economic activity to erode demand.
The Brent price spread between December 2025 and December 2026 has also flipped into contango as investors priced in oversupply and demand concerns, BMI said. In a contango market, front-month prices are lower than those in future months, indicating no shortage of supply.
Beijing increased its tariffs on US imports to 125% on Friday, hitting back against President Donald Trump's decision to raise duties on Chinese goods and raising the stakes in a trade war that threatens to upend global supply chains.
Trump on Saturday granted exclusions from steep tariffs on smartphones, computers and some other electronics largely imported from China, but on Sunday he said he would be announcing the tariff rate on imported semiconductors over the next week.
The trade war has heightened worries that unsold exports could continue driving domestic Chinese prices down.
"Inflation data from China were a window into an economy that is not in shape for a trade fight. Consumer prices fell for a second month in a row in year-on-year terms, while producer prices chalked up their 30% straight fall," Moody's Analytics said in a weekly note, referring to data released on April 10.
As companies prepare for a possible decline in demand, US energy firms last week cut oil rigs by the most in a week since June 2023, lowering the total oil and natural gas rig count for a third consecutive week, according to Baker Hughes.
Potentially supporting oil prices, US Energy Secretary Chris Wright said on Friday that the United States could stop Iran's oil exports as part of Trump's plan to pressure Tehran over its nuclear program.
Both countries held "positive" and "constructive" talks in Oman on Saturday and agreed to reconvene next week in a dialogue meant to address Tehran's escalating nuclear program, officials said over the weekend.
"This may help remove some of the sanction risk affecting the oil market, particularly if talks keep on moving in the right direction," ING analysts led by Warren Paterson said in a note.

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