Financing signed for $8.5bn Neom hydrogen project

1 March 2023

Neom Green Hydrogen Company (NGHC) has signed financing agreements with banks and lenders for the $8.5bn integrated green hydrogen project in Neom, Saudi Arabia.

According to a bourse filing by Saudi utility developer and investor Acwa Power, one of the three NGHC consortium companies, the total financing consists of $5.85bn of senior debt and $475m of mezzanine debt facilities.

Both are arranged on a non-recourse project finance basis, as follows:

  • $1.5bn from the National Development Fund on behalf of the National Infrastructure Fund
  • $1.25bn in the form of SR-denominated financing from the Saudi Industrial Development Fund

The balance is from a consortium of financiers, structured as a combination of long-term uncovered tranches and an Euler Hermes covered tranche, comprising:

  • First Abu Dhabi Bank
  • HSBC
  • Standard Chartered Bank
  • Mitsubishi UFJ Financial Group
  • BNP Paribas
  • Abu Dhabi Commercial Bank
  • Natixis
  • Saudi British Bank
  • Sumitomo Mitsui Banking Corporation
  • Saudi National Bank
  • KFW
  • Riyad Bank
  • Norinchukin Bank
  • Mizuho Bank
  • Banque Saudi Fransi
  • Alinma Bank
  • Apicorp
  • JP Morgan
  • DZ Bank
  • Korea Development Bank 
  • Credit Agricole

MEED previously reported that the project capital needs for the integrated Neom green hydrogen project have increased to $8.5bn, up 70 per cent from the original cost estimated at $5bn when the project was first announced in July 2020.

The project’s capital requirement had increased to $6.7bn during the intervening period, before reaching the current estimate.

The increases accounted for inflation since 2020 and the additional scope to make the project more self-sufficient and with lower operating costs.

The latest upward capital revision accounts for project financing costs, up-front fees, interest during construction, additional joint venture costs and land, among others.

Neom, Air Products and Acwa Power each have a 33.3 per cent stake in NGHC, the special project vehicle implementing the $8.5bn project.

Air Products is also the main engineering, procurement and construction (EPC) contractor and system integrator for the project and the exclusive offtaker of the green ammonia produced at the facility.

The integrated facility will produce hydrogen to be synthesised into carbon-free ammonia for export exclusively by Air Products to global markets.

Execution status

Air Products said the project’s engineering phase is 30 per cent complete, with all major subcontracts awarded. The land preparation is also complete.

Air Products signed a sub-contract agreement with India’s Larsen & Toubro (L&T) for the power grid and generation works for the Neom green hydrogen project, as MEED reported in January.

The contract covers the construction of a 2,930MW solar power generation plant, a 1,370MW wind power farm and a 400MW battery energy storage system, according to a source familiar with the plan.

The package also includes a power transmission network extending 190 kilometres.

The planned wind and solar power plants are located in northwest Saudi Arabia, close to the border with Jordan.

Notice to proceed

In April 2021, Acwa Power confirmed signing limited notice to proceed (LNTP) agreements for the overall EPC contract for the Neom green hydrogen project.

The agreements include an in-kingdom LNTP for the EPC contract between NGHC and Air Products Middle East Industrial Gases; and an out-of-kingdom LNTP for the EPC contract between NGHC and Air Products Equipment.

In addition to the renewable energy plants, battery storage and power transmission network, the Neom green hydrogen and ammonia project comprises 2,000MW of electrolysers to produce 650 tonnes of hydrogen a day and air separation units to produce nitrogen for the conversion of hydrogen into 1.2 million tonnes of ammonia a year.

In June 2021, US-headquartered Baker Hughes announced it would supply Air Products with advanced compression technology for the Neom facility’s electrolyser plant.

In December 2021, NGHC awarded Germany’s Thyssenkrupp Uhde Chlorine Engineers the contract to supply a more than 2GW electrolysis plant for the project.

Under this contract, Thyssenkrupp will engineer, procure and fabricate the plant based on the firm’s 20MW alkaline water electrolysis module.

In December, NGHC announced the signing of facility agreements with local, regional and international banks for the project.

It also announced the execution of a commitment letter with the Saudi Industrial Development Fund.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10639931/main.gif
Jennifer Aguinaldo
Related Articles
  • Chinese firm wins Dubai drainage contract

    20 July 2026

    China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.

    The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai. 

    MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.

    The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.

    It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.

    In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

    These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.

    Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.

    According to a source, a consultant has yet to be appointed.

    TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.

    Bids are currently under evaluation for the EPC contracts for both projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705058/main.jpg
    Mark Dowdall
  • Dubai receives eight bids for Hassyan SWRO pipeline contract

    20 July 2026

    Register for MEED’s 14-day trial access 

    Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.

    The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).

    Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.

    The other bids were:

    • Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
    • Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
    • Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
    • RMB Contracting (UAE) – AED437.96m ($119.3m) 
    • Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
    • Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
    • Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)

    RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received. 

    In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.

    Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.

    Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704940/main.jpg
    Mark Dowdall
  • Abu Dhabi launches E20 highway expansion project

    20 July 2026

    Abu Dhabi’s Department of Municipalities and Transport (DMT) has announced the E20 highway expansion project.

    The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.

    Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.

    The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.

    The E20 expansion is one of the major infrastructure schemes being overseen by DMT in Abu Dhabi.

    Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.

    The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.

    Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704696/main.jpg
    Yasir Iqbal
  • Firms given more time for Mid Island Parkway prequalifications

    20 July 2026

     

    Abu Dhabi’s Modon Infrastructure has extended the deadline to 31 July for firms to submit expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership (PPP).

    The previous deadline was 15 July. MEED understands the prequalification notice was issued in June, following Modon Infrastructure’s invitation in May for firms to register their interest.

    Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.

    Phase two of the MIPP involves the construction of about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.

    The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.

    Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.

    Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.

    It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704765/main.jpg
    Yasir Iqbal
  • Aramco executive becomes Samref chairman

    17 July 2026

    Saudi Aramco Mobil Refinery Company (Samref) has announced the appointment of Abdullah Bin Saleh Al-Suwailem as the chairman of its board of directors.

    Al-Suwailem serves as senior vice president of Western Region manufacturing at Saudi Aramco.

    Prior to being appointed chairman, Al-Suwailem had been a member of the Samref board since .

    Samref is the downstream joint venture of Aramco and US oil and gas producer ExxonMobil. The entity owns a crude refining facility located in Yanbu on Saudi Arabia’s west coast, which entered operations in November 1984.

    The Samref refinery has a capacity of 400,000 barrels a day (b/d) and mainly produces propane and several grades of automotive diesel oil, two grades of marine heavy fuel oil and sulphur.

    In a , Samref said that Al-Suwailem “brings more than 30 years of leadership across the refining and petrochemicals sectors, having led some of the kingdom's most significant industrial joint ventures”.

    “We expect his deep expertise in governance and large-scale operations to be invaluable as Samref continues its journey of growth and operational excellence. We look forward to his leadership in steering the board's strategic direction,” Samref added.

    Aramco and ExxonMobil signed a memorandum of understanding (MoU) in May 2025 to evaluate a significant upgrade of the Samref complex and expand the oil refining facility into a world-class integrated petrochemicals complex.

    The MoU between Aramco and ExxonMobil to upgrade the Yanbu refinery and convert the facility into an integrated refining and petrochemicals complex was signed at the Saudi-US Investment Forum held in Riyadh on 13-14 May 2025, during US President Donald Trump’s state visit to Saudi Arabia.

    MEED understands that the Samref petrochemicals expansion project is one of the schemes that comprise Aramco’s $100bn liquids-to-chemicals programme.

    Aramco has divided its liquids-to-chemicals programme into four main projects and has taken steps forward this year by signing joint-venture investment agreements with foreign partners for these schemes:

    • Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery. Front-end engineering and design (feed) on the project is under way and is being performed by Samsung E&A, although progress has been slow.
    • Conversion of the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. China’s Sinopec is a joint-venture partner in the project.
    • Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. US oil and gas producer ExxonMobil, Aramco and Samref signed a venture framework agreement in December to begin preliminary feed work on the project.
    • Building a crude oil-to-chemicals complex in Ras Al-Khair in the Eastern Province. Progress on this project remains slow.

    The central aim of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million b/d of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

    Aramco and its subsidiary Saudi Basic Industries Corporation (Sabic) were tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which included greenfield developments and expansions of existing facilities, were to be built both in Saudi Arabia and in overseas markets.


    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17697004/main.gif
    Indrajit Sen