ACWA Power Secures $8.5 billion For NEOM Sustainability Project

ACWA Power holds a 33.3% equity stake in the NGHP

The project, a joint venture between ACWA Power, Air Products, and NEOM Company, is set to be commissioned in 2026.

ACWA Power holds a 33.3% equity stake in the NGHP, which will be funded by a combination of long-term debt and equity.

As further mentioned in the report, the financing includes $5.852 billion in senior debt and $475 million in mezzanine debt facilities arranged on a non-recourse project finance basis, as follows:

— $1.50 billion from the National Development Fund (NDF) on behalf of the National Infrastructure Fund (NIF).

$1.25 billion is in the form of Saudi riyal-denominated financing from the Saudi Industrial Development Fund (SIDF).

According to the report, the rest of the money came from a group of banks, including First Abu Dhabi Bank, HSBC, and Standard Chartered Bank, in the form of long-term uncovered tranches and a covered tranche from Euler Hermes.

The NGHP will establish and operate a green hydrogen and green ammonia facility in the NEOM region of Saudi Arabia under a 30-year green ammonia offtake contract with Air Products.

Talking about the NEOM Green Hydrogen Project report, it states that the NEOM Green Hydrogen Project is the world’s largest utility-scale, commercially-based hydrogen facility powered entirely by renewable energy.

When commissioned in 2026, the NGHP will produce 600 tonne per day of clean hydrogen by electrolysis using thyssenkrupp technology; nitrogen by air separation using Air Products technology; and up to 1.2 million tonne per year of green ammonia. When complete, the project will mitigate the impact of 5 million metric tonnes of carbon emissions per year, according to the report.