ACWA Power, Air Products and Saudi Arabian smart city initiative NEOM are to build a production facility for making green hydrogen, powered by renewable energy.
The $5bn (€4.3bn) green hydrogen-based ammonia production plant will be built at a site in north-west Saudi Arabia where NEOM is developing a smart city and innovation hub.
The plant, in which the three partners will have equal ownership, will supply 650 tonnes of green hydrogen for exporting globally.
The plant will integrate with over 4GW of renewable energy sources, from solar, wind and energy storage and is slated to come onstream in 2025.
Electrolysyer technology will be provided by Thyssenkrupp.
Air Products’ equipment will be produce nitrogen by air separation, while 1.2 million tonnes, annually, of green ammonia will be manufactured using Haldor Topsoe technology.
Air Products will be the exclusive offtaker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.
Air Products chairman, president and chief executive Seifi Ghasemi said: “We are honoured and proud to partner with ACWA Power and NEOM and use proven technologies to make the world’s dream of 100% green energy a reality.
“Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of carbon dioxide emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.”
ACWA Power chairman Mohammad Abunayyan added: “Stemming from our belief in Vision 2030 and HRH Crown Prince Mohammed bin Salman’s aspirations for NEOM to become the global pioneer in sustainable living, the board of directors and management of ACWA Power are proud to take part in this groundbreaking and first-of-its-kind investment in the world.
“ACWA Power has a proven track record of leveraging pioneering renewable technologies to deliver carbon-free power at the lowest cost.
“With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits.
“Based in NEOM’s industrial cluster, and enabled by its unique mandate, this investment will integrate and localise cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.”
NEOM chief executive Nadhmi Al Nasr added: “This partnership reflects our deep commitment to developing a carbon positive society which will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world.