Hydrogen Market
The Neom hydrogen scheme will move forward.
According to a source in the industry, the impending award of the civil works contract for the $5 billion Helios Green Fuels project in Neom, Saudi Arabia, should make it easier to close the project's financing.
According to a MEED report from August, the project's development team plans to sign offtake agreements and complete financial close on the project by the middle of this year.
The facility will produce hydrogen that will be converted into carbon-free ammonia for exclusive export by Air Products to international markets. The facility is being developed by Neom Green Hydrogen Market, which is made up of Neom, Saudi utilities developer Acwa Power, and US company Air Products.
It is understood that the team is reviewing proposals and getting ready to select the contractor for finishing the construction of the hydrogen and ammonia plants, which is expected to cost around $600 million.
The companies that have submitted technical and commercial proposals for the contract include:
• China Tianchen Engineering Corporation (China)
• Consolidated Contractors Company (Lebanon)
• Nasser S. Al-Hajri Corporation (local)
A contract for the renewable energy-powered hydrogen-based ammonia production facility was signed in July 2020 by Air Products, Acwa Power, and Neom. The project will be equally owned by the three businesses.
The facility is expected to incorporate 4 GW of renewable energy from solar, wind, and storage; the production of 650 metric tons of hydrogen per day via electrolysis using technology from ThyssenKrupp; the production of nitrogen via air separation using technology from Air Products; and the production of 1.2 million metric tons of green ammonia annually using Haldor Topsoe.
Baker Hughes, a US-based company, announced in June that it would provide advanced compression technology to Air Products for the undertaking.
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