NEOM Accelerates Moves towards Green Hydrogen Production

 David Edmondson, CEO of the NEOM Green Hydrogen Company (NGHC) Asharq Al-Awsat)
 David Edmondson, CEO of the NEOM Green Hydrogen Company (NGHC) Asharq Al-Awsat)
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NEOM Accelerates Moves towards Green Hydrogen Production

 David Edmondson, CEO of the NEOM Green Hydrogen Company (NGHC) Asharq Al-Awsat)
 David Edmondson, CEO of the NEOM Green Hydrogen Company (NGHC) Asharq Al-Awsat)

Saudi Arabia’s NEOM is accelerating steps towards hydrogen production, as part of its endeavor to advance green and sustainable solutions and achieve the zero-carbon emission initiative by 2060.

NEOM Green Hydrogen Company has announced an exclusive 30-year off-take agreement with Air Products for the world’s largest green hydrogen plant.

David Edmondson, CEO of the NEOM Green Hydrogen Company (NGHC), said that the Saudi market, and specifically NEOM, would shift towards an economy that depends on green hydrogen, and transfer it to America, Europe and Asia through Air Products.

Edmondson added that officials in NEOM continue to lead change and transformation in this field. He noted that the product will be sold in the local market for the transportation sector, whether trucks or buses, revealing that the plant will start operating in mid-2024.

Located in Oxagon, the NEOM Green Hydrogen Company (NGHC) facility will be the largest commercial-scale green hydrogen production complex in the world, with initial production of up to 600 tons of green hydrogen per day, saving 5 million tons of CO2 annually, NEOM said in a statement.

NGHC – an equal joint venture between NEOM, ACWA Power and Air Products – highlighted a total of SAR 22.9 billion of financing secured from 23 financial institutions, including Saudi Industrial Development Fund (SIDF), National Infrastructure Fund (NIF), as well as local and international banks.

Moreover, NGHC also 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.

NEOM added that Oxagon was selected as the location for NGHC due to its natural resources, strategic coastal location and the opportunity for industrial efficiency as a result of proximity to supporting cutting-edge facilities and future tenants based there.

In January, the Saudi Ministry of Industry and Mineral Resources granted the first industrial operating license to NEOM for green hydrogen, in a move that supports the Kingdom’s efforts to produce green hydrogen worldwide and consolidates its position as a leading country in the global energy sector.



Türkiye Receives Waiver for Gas Payments to Russia from Gazprombank Sanctions

A view shows a board with the logo of Gazprombank at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Gazprombank at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
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Türkiye Receives Waiver for Gas Payments to Russia from Gazprombank Sanctions

A view shows a board with the logo of Gazprombank at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Gazprombank at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Türkiye has received an exemption for gas payments to Russia after the United States imposed sanctions on Gazprombank, Turkish Energy Minister Alparslan Bayraktar revealed in response to a question from Reuters.

The US imposed new sanctions on Russia's Gazprombank in November, creating an obstacle for buyers of Russian gas, which had been using the bank to make payments. They have since been seeking clarification and exploring other ways to pay.

Türkiye imports almost all its gas requirement and Russia is the top supplier, providing more than 50% of the country's pipeline imports.

Ankara's pipeline gas imports from Russia stood at 21.1 bcm last year.

Türkiye had requested an exemption in discussions with US officials so that it can continue paying for Russian natural gas imports via Gazprombank.

The US on Thursday also granted a waiver to Hungary, which mainly relies on Russian oil and gas.