Air Products, ACWA Power and NEOM sign deal to build $5bn ammonia project


Air Products, ACWA Power and Saudi Arabia’s NEOM have signed an agreement for $5bn green hydrogen-based ammonia production facility in Saudi Arabia.

Powered by renewable energy, the joint venture project will be equally owned by the three partners.

Equipped to produce green ammonia for global exports, the project will be located in NEOM, a new model for sustainable living located in the north-west corner of Saudi Arabia.

Air Products chairman, president and CEO Seifi Ghasemi said: “Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.”

Air Products will serve as an exclusive off-taker of the green ammonia from the plant, which is scheduled for commissioning in 2025.

The project will integrate over four gigawatts of renewable power from solar, wind and storage; production of 650t per day of hydrogen by electrolysis using thyssenkrupp technology; production of nitrogen by air separation using Air Products’ technology; and production of 1.2 million tonnes per year of green ammonia using Haldor Topsoe technology.

ACWA Power chairman Mohammad Abunayyan said: “Based in NEOM’s Industrial Cluster, and enabled by its unique mandate, this investment will integrate and localize cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.”

NEOM CEO Nadhmi Al Nasr said: “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.”

The new ammonia production facility will be located in NEOM in the nort-west corner of the Saudi Arabia. (Credit: Jürgen Rübig from Pixabay)

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