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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)
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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.

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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.