Major Contract Awarded for Green Hydrogen Plant Project in NEOM

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A major solar equipment contract for the Green Hydrogen Plant Project in NEOM, Saudi Arabia, has been awarded to Spain-headquartered PVH. Larsen & Toubro (L&T) awarded the contract to the firm for the provision of solar trackers. Quite impressively, the company is also reported to be the world’s largest tracker supplier. Its Jeddah manufacturing facility boasts a total capacity of 8 GWp. Meanwhile, its global market share is said to exceed 10%.

The Green Hydrogen Plant Project in NEOM will include a 2.97-gigawatt peak (GWp) solar PV plant. Moreover, the plant boasts a fully powered supply of renewable energy. As a whole, the development is owned by NEOM Green Hydrogen COmpany (NGHC), an equal joint venture by ACwA Power. 

L&T will serve as the EPC contractor for the power elements package of the green hydrogen facility. This will include a 400 MWh battery energy storage system (BESS) and a 1.65 GW wind generation balance plant. Thus far, contracts that have been awarded are for, wind turbines, BESS as well as gas-insulated substations. 

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An Overview Of The Green Hydrogen Plant Project in NEOM

On May 2023, NGHC officially completed a financial close of USD 8.4 billion investment value in total, for the hydrogen plant. Furthermore, reports noted that the project will receive USD 6.1 billion in non-recourse financing from 23 local banks. Alongside, international, regional as well as financial institutions. Taking it a step further, the project secured an exclusive 30-year off-take agreement, for all the green ammonia production. 

T Madhava Das, Sr Executive Vice President (Utilities), L&T said that the development aims to enable and offer an extensive production of carbon-free hydrogen. Upon project signing, the Chairman of PVH noted that the firm is more than ready to embark on the ambitious venture. Ivan Higueras further added that the firm stays committed to supporting Saudi Arabia’s clean energy targets.