ACWA Power has announced the start of the formal construction of the NEOM green hydrogen project in Saudi Arabia. The project is expected to reach completion by the end of 2026, and is projected to become the world’s largest green hydrogen production facility once operational.

Jul 6, 2023

ACWA Power shared in a statement that the NEOM green hydrogen project in Saudi Arabia has formally begun construction, and is expected to reach completion by the end of 2026. The company’s affiliate NEOM Green Hydrogen Company (NGHC) issued a full award notice for the engineering, procurement and construction (EPC) contractor, which has been approved, it added. Additionally, ACWA Power’s contribution of USD 300 million in the limited notice to proceed (LNTP) agreement will convert into its equity in the project.

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As per the statement, all project agreements have been signed, adding partners have agreed to manage certain execution risks related to the EPC contract. ACWA Power signed an EPC contract worth USD 900 million for the project in April 2022. The NEOM project, jointly developed by ACWA Power, Air Products and NEOM, is projected to become the world’s largest green hydrogen production facility once operational.