Air Products on Tuesday announced an agreement for $5 billion green hydrogen-based ammonia production facility that will be powered by renewable energy. The project will be equally owned by Air Products, ACWA Power of Saudi Arabia and NEOM.
NEOM is a new model for sustainable living located in the North West corner of the Kingdom of Saudi Arabia, and will produce green ammonia for export to global markets.
The plant is scheduled to be operating in 2025 and will produce 1.2 million tons per year green ammonia.
Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.
The plant is based on proven, world-class technology and will include the innovative integration of over four gigawatts of renewable power from solar, wind and storage; production of 650 tons 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 tons per year of green ammonia using Haldor Topsoe technology.
On top of Air Products’ one-third ownership of the $5 billion plant, the industrial gases giant also plans to invest roughly $2 billion to handle distribution to end customers. That brings Air Products’ total investment in the project to about $3.7 billion.
In a news release, Air Products Chairman, President and CEO Seifi Ghasemi said the project will harness Neom’s sun and wind to convert water to hydrogen, yielding a clean source of energy that will save more than 3 million tons of carbon dioxide emissions annually. In addition, he said, it will eliminate smog-forming emissions and other pollutants from the equivalent of more than 700,000 cars.
“We are honored and proud to partner with ACWA Power and Neom and use proven technologies to make the world’s dream of 100% green energy a reality,” said Ghasemi, who recently had his contract with Air Products extended through Sept. 30, 2025.