NEOM signs JV with ACWA Power, Air Products for $5 bln green ammonia production facility

Saudi Arabia’s NEOM, ACWA Power and US-based Air Products have signed an agreement for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy, the companies said in a joint statement on Tuesday.

The project, equally owned by the 3 partners, will be located in NEOM and will produce green ammonia for export to global markets.

The joint venture project is the first partnership for NEOM within the renewable energy field, a cornerstone for its strategy to become a major player in the global hydrogen market.

Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

The project involves the integration of over 4 gigawatts (GW) of renewable power from solar, wind and storage; production of 650 tons per day of hydrogen by electrolysis using ThyssenKrupp technology; production of nitrogen by air separation using Air Products technology, as well as the production of 1.2 million tons per year of green ammonia using Haldor Topsoe technology.

The facility is scheduled to be onstream in 2025.

“This is a pivotal moment for the development of NEOM and a key element in Saudi Vision 2030 contributing to the Kingdom’s clean energy and circular carbon economy strategy,” said NEOM CEO, Nadhmi Al Nasr.