ACWA Power, a leader in power generation and water desalination plants, has signed a $900mn (SAR 3.3bn) engineering, procurement and construction (EPC) agreement for the NEOM Green Hydrogen Project, according to a stock market filing.
Announced as the largest green hydrogen production facility in the world, the project is being jointly developed by ACWA Power, Air Products, a world leader in industrial gases, and NEOM. The project will use over 4GW of combined renewable energy capacity to generate the power used for producing green hydrogen.
Details of ACWA Power’s stock market filing
As per the filing, ACWA Power Company owns 33.3% of the NEOM Green Hydrogen Company, alongside Air Products (33.3%) and NEOM Company (33.4%).
The project is located in NEOM and will have an expected capacity of 1.2mn tonnes per annum of green ammonia. It is for a period of six months.
The contract is a limited notice to proceed (LNTP) agreement and will include:
– In Kingdom LNTP in relation to the EPC contract between NEOM Green Hydrogen Company and Air Products Middle East Industrial Gases LLC;
– Out of Kingdom LNTP in relation to the EPC contract between NEOM Green Hydrogen Company and Air Products Equipment limited;
– Parent Company Guarantee and Co-Ordination Deed for the LNTP in relation to the EPC contract between NEOM Company; ACWA POWER Company;
ACWA Power along with Air Products and NEOM had announced the planned project in July 2020, for this large-scale green hydrogen-based ammonia production facility powered by renewable energy.
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