GE wins Neom substation deal

12 June 2023

India's Larsen & Toubro, the engineering, procurement and construction (EPC) contractor for the utility infrastructure of the $8.4bn Neom green hydrogen project in Saudi Arabia, has awarded GE Grid Solutions a contract to supply 380-kilovolt (kV) T155 gas-insulated substations (GIS) for the scheme.

Located in Oxagon at Neom in northwestern Saudi Arabia, the project aims to produce 600 tonnes a day of carbon-free hydrogen using solely wind and solar power by the end of 2026.

GE’s GIS and the 1.5 breaker configuration will "help ensure uninterrupted operation at the hydrogen plant and the wind and photovoltaic plants, which will produce captive energy for the plant".

GE’s switchgear will also support the primary grid by increasing power supply reliability, the firm said

The company will be responsible for designing, manufacturing, supplying and supervising the installation and commissioning of the 92 bays of GIS for the plant.

The equipment is being manufactured at Grid Solutions’ site in Aix-Les-Bains, France.

Grid Solutions is part of the US-based firm's Vernova businesses portfolio.

Larsen & Toubro won the EPC contract to build a 2,200MW solar photovoltaic plant, a 1,650MW wind generation balance of plant, and a 400 megawatt-hour (MWh) battery energy storage system to support the Neom green hydrogen project.

It will also build three 380 kV substations, 306 kilometres of 380kV overhead lines, and underground cables required for the kingdom’s electrical grid.

Saudi utility developer Acwa Power, the US' Air Products and Neom equally own Neom Green Hydrogen Company (NGHC), the special project vehicle for the $8.4bn green hydrogen-based ammonia production plant in Oxagon.

The project reached financial close in May, with 23 banks and investment companies backing the deal.

In addition to being the exclusive offtaker of the ammonia produced at the plant, Air Products is the nominated contractor and system integrator for the entire facility, with a contract valued at  $6.7bn.

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Jennifer Aguinaldo
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