NEOM Green Hydrogen Company (NGHC) in Saudi Arabia has secured agreements with financial institutions for its green hydrogen production facility, with a combined investment value of $8.4 billion.

The financial agreements for the project, which saw participation from 23 institutions, were successfully concluded through a diverse range of local, regional, and international banks and financial institutions. Additionally, an Euler Hermes tranche was also included in the investment arrangement.

Under construction at Oxagon in Saudi Arabia’s NEOM region, the joint venture involving Acwa Power, Air Products, and NEOM is set to become the world’s largest green hydrogen production facility. By incorporating up to four gigawatts of solar and wind energy, the facility aims to generate approximately 600 tonnes per day of carbon-free hydrogen by the end of 2026, employing green ammonia as a cost-effective solution.

According to the press release, the project has secured $6.1 billion in non-recourse financing from 23 financial institutions. This financing structure has been certified by S&P Global as compliant with green loan principles, making it one of the largest project financings implemented under the green loan framework. Additionally, NGHC has secured a 30-year exclusive off-take agreement with Air Products for all the green ammonia produced at the facility.

NGHC has finalized a $6.7 billion engineering, procurement, and construction agreement with Air Products, appointing them as the facility’s nominated contractor and system integrator.

“This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project,” said Nadhmi Al-Nasr, Chairman, NEOM Green Hydrogen Company and CEO of NEOM. “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.”

David R. Edmondson, Chief Executive Officer of NGHC, noted it as a historic moment. “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.”

In January 2023, the Ministry of Industry and Mineral Resources of Saudi Arabia granted NGHC its first industrial operating license, paving the way for Saudi Arabia to emerge as one of the largest hydrogen producers globally.