Abu Dhabi identifies $2bn in investment opportunities in South Korea 

RIYADH: In a transfer to assist Saudi Arabia obtain its sustainability targets, NEOM Inexperienced Hydrogen Co. is breaking new floor with the intention to begin the full-time operation of the world’s largest inexperienced hydrogen plant in 2026.

In an interview with Arab Information, David Edmondson, CEO of NGHC mentioned the corporate is able to face any challenges which will come up whereas constructing this hydrogen plant which might revolutionize the continuing power transition journey. 

“We’re constructing the world’s largest plant to provide inexperienced hydrogen at scale. As a first-of-its-kind facility, and with key learnings not out there to us with no different related services on the earth, we’re very a lot navigating uncharted territory within the inexperienced hydrogen and sustainable power house,” mentioned Edmondson. 

He acknowledges that tasks of this scale include challenges however “we’ve got already employed some nice expertise.” 

With the assist of its shareholders and dedication from its expertise companions, Edmondson mentioned the corporate is “ready for any situation by leveraging the expertise and experience of everybody supporting us on the venture.” 

The agency behind the mega-plant, which can combine as much as 4 gigawatts of photo voltaic and wind power to provide as much as 1.2 million tons of inexperienced ammonia, achieved the monetary closure on the venture in NEOM’s industrial metropolis OXAGON at a complete funding worth of $8.4 billion.

This got here after it signed monetary paperwork with 23 native, regional, and worldwide banks and funding corporations. 

“Collectively, these banks and monetary establishments have dedicated to funding our funding and, alongside these from throughout the area and world wide, we’re privileged that the Saudi Industrial Growth Fund and Nationwide Infrastructure Fund are amongst these supporting us,” added Edmondson. 

An equal three way partnership between ACWA Energy, Air Merchandise, and NEOM, NGHC’s mega-plant will produce as much as 600 tons per day of carbon-free hydrogen by the tip of 2026. 

NGHC has additionally concluded the engineering, procurement, and development settlement with Air Merchandise because the nominated contractor and system integrator for all the facility. 

“This substantial monetary backing from the funding group reveals the unequalled potential of NGHC’s inexperienced hydrogen venture. With the monetary shut introduced at the moment, we’re taking an enormous leap towards opening the plant, in step with NEOM’s imaginative and prescient to speed up renewable options,” mentioned Nadhmi Al-Nasr, chairman of NGHC and CEO of NEOM. 

Mohammed Abunayyan, chairman of ACWA Energy, mentioned the corporate is proud to assist and facilitate the profitable monetary shut of the much-anticipated inexperienced hydrogen facility within the Kingdom, which can contribute to the targets outlined in Imaginative and prescient 2030. 

“We’ve a confirmed observe file of leveraging revolutionary options and superior expertise to ship clear, sustainable energy on the lowest price. It is a vital step ahead in our shared objective to speed up the shift to wash power and assist the Kingdom’s decarbonization targets,” mentioned Abunayyan. 

Edmondson additional famous that shareholders and the funding group are giving enough assist to make this inexperienced hydrogen venture a actuality sooner or later. 

“The 23 banks and monetary establishments referred to beforehand are offering $6.1 billion in non-recourse financing as a part of the entire worth. Such substantial backing from the funding group reveals the large potential of our venture to steer the world in tomorrow’s hydrogen revolution and we sit up for making this imaginative and prescient a actuality with their assist,” he added. 

He mentioned that expertise is a serious enabler as this inexperienced hydrogen facility is preparing for its operation, noting that NGHC’s expertise companions had been chosen early within the venture growth part to make sure that “we had been in a position to make sure a seamless integration throughout the entire facility.” 

NGHC’s CEO identified that the Center East and North Africa area has all of the potential to turn into a worldwide renewable powerhouse, as there are already massive areas of land the place tasks will be developed with considerable entry to daylight and wind. 

“For the MENA area, changing into a worldwide hydrogen powerhouse within the many years forward is a practical risk. Over many many years, the area has gained monumental significance as a worldwide producer and exporter of power,” Edmondson informed Arab Information. 

He concluded: “As fossil gas reliance wanes and calls for for cleaner power enhance, the area has a possibility to imagine this place within the subject of inexperienced hydrogen, inexperienced ammonia and low-carbon fuels typically, in addition to set up world-class infrastructure and internationally acknowledged certification techniques.”