ACWA Power signs $8.5bln investment agreement for NEOM Green Hydrogen Project
ACWA Power announces the finalization and signing of the financing agreements by NGHC with the financing consortium for the NEOM Green Hydrogen Project (“NGHP”) at total investment cost of USD 8.5 billion, funded by a combination of long-term debt and equity.
NGHC is a joint venture (JV) between ACWA Power, Air Products and NEOM Company, with ACWA Power holding a 33.3% equity stake.
NGHP comprises the development, financing, design, engineering, procurement, manufacturing, factory testing, transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of a world scale green hydrogen and green ammonia facility in the NEOM region of Saudi Arabia, under a 30-year green ammonia offtake contract with Air Products.
The total financing consists of USD 5,852 million senior debt and USD 475 million of mezzanine debt facilities, both arranged on a non-recourse project finance basis, as follows:
- USD 1,500 million from National Development Fund (NDF) on behalf of National Infrastructure Fund (NIF), under foundation.
- USD 1,250 million is in the form of SAR denominated financing from Saudi Industrial Development Fund (SIDF)