The terms of the agreement foresee that Air Products exclusively includes green ammonia in order to distribute it internationally and, in turn, produce green hydrogen for the transport sector.
Air Products, together with ACWA Power and NEOM, has declared the signing of an agreement worth $ 5 billion for the construction of a manufacturing site that will produce 'green' hydrogen from ammonia and that will be exported worldwide. The manufacturing site, powered by renewable energy, will be owned by the three partners and will be built at NEOM, a new concept of sustainable way of live located in the northwest of Saudi Arabia.
It is a joint project that becomes the first association that produces within NEOM for national and international partners, being leaders in the field of renewable energy, and will be the cornerstone of its strategy to become an important actor within the world hydrogen market. It is based on proven technology that will include the innovative integration of more than four gigawatts of renewable energy, both solar and wind, as well as its storage; the production of 650 tons of hydrogen per day by electrolysis using thyssenkrupp technology; nitrogen production by air separation with Air Products technology; and the production of 1.2 million tons of green ammonia per year from Haldor Topsoe technology. The manufacturing site is expected to start operating in 2025.
The terms of the agreement foresee that Air Products exclusively purchases green ammonia to distribute it internationally and, in turn, produce green hydrogen for the transport sector.
"We are honoured and proud to partner with ACWA Power and NEOM with the purpose of using consolidated technologies to make the dream of 100% green energy a reality," said Seifi Ghasemi, Chairman of the Board of Directors, President and CEO of Air Products. "Taking advantage of NEOM's unique potential in terms of solar and wind energy to obtain hydrogen from water, this project will be able to obtain totally clean energy on a large scale and save the world more than three million tons of CO2 per year, in addition to eliminating the emissions responsible for air pollution and other pollutants equivalent to more than 700,000 vehicles ”.
For his part, Mohammad A. Abunayyan, President of ACWA Power, has stated that “as a result of our commitment to '2030’s Vision' and the aspirations of his Royal Highness Crown Prince Mohammed bin Salman for NEOM to become a pioneering initiative in global sustainability, the ACWA Power Board of Directors is proud to participate in this innovative investment, the first of its kind in the world. ACWA Power has proven experience in harnessing cutting-edge renewable technologies to deliver carbon-free energy at the lowest cost. We are confident that our global experience, coupled with collaboration with an industry leading company like Air Products, will create opportunities in green hydrogen production and help us achieve our goal of helping countries meet their clean energy goals, as well as generating significant economic benefits. Within the NEOM Industrial Cluster and thanks to a unified management, this investment will integrate cutting-edge technologies that will take advantage of solar and wind energy to produce sustainable and accessible green energy on a global scale.”
Finally, NEOM’s CEO, Nadhmi Al Nasr commented that “this partnership reflects our deep commitment to developing a carbon-positive society that will be a beacon for sustainable living and a solution to many of the environmental challenges those facing the world. This project demonstrates NEOM's ability to create significant partnership opportunities between national and international investors. This is a crucial moment for the development of NEOM and a key element in the 'Saudi Vision 2030' that contributes to the Kingdom's clean energy and circular economy strategy. This is the largest renewable hydrogen project in the world, which is why NEOM's Board of Directors, led by HRH Crown Prince Mohammed bin Salman, and the company's executive team are delighted to announce this important step in getting NEOM to become a world leader in the production of green hydrogen and green fuels. We are also delighted that two world-class companies like Air Products and ACWA Power have joined us in developing this important project, the first of many developments on this scale that will place NEOM at the heart of a new future society. ”
Source: PQ, R., 2020. Air Products, ACWA Power Y NEOM Construirán Una Planta De Hidrógeno Verde. [online] Revista PQ. Available at: <http://www.revistapq.com/es/notices/2020/07/air-products-acwa-power-y-neom-construiran-una-planta-de-hidrogeno-verde-65532.php?utm_source=newsletter&utm_medium=email&utm_campaign=hidr-geno-verde-novedoso-proyecto-de-vida-sostenible-que-ver-la-luz-en-2025#.XxU26W5uJzl> [Accessed 20 July 2020].
If you have suggestions on our blog or need information from our teams, do not hesitate to contact us.
Commercial, Marketing and Communication Department
Tel: (+34) 938.605.100