Gas supplier Air Products, renewable energy developer ACWA Power and NEOM, have signed an agreement for a $5-billion world-scale green hydrogen-based ammonia production facility, powered by renewable energy.

The project will produce green ammonia for export to global markets and be jointly owned by the three partners.

The ammonia production facility will be sited in NEOM, which is a planned cross-border city in the Tabuk province of Saudi Arabia, incorporating smart city technology and functioning as a tourist destination.

The joint venture project is the first partnership for NEOM with leading international and national partners in the renewable energy field and it will be a cornerstone for its strategy to become a major player in the global hydrogen market.

It is based on proven, world-class technology and will include the innovative integration of over 4 GW of renewable power from solar, wind and storage; the production of 650 t/d of hydrogen by electrolysis using thyssenkrupp technology; the production of nitrogen by air separation using Air Products technology; and the production of 1.2-million tons a year of green ammonia using Haldor Topsoe technology.

The project is scheduled to be on stream in 2025.

Air Products will be the exclusive offtaker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

“We are honoured 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.

“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 carbon dioxide emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700 000 cars,” says Air Products CEO Seifi Ghasemi.

NEOM CEO Nadhmi Al Nasr says the partnership between the three companies reflects NEOM’s deep commitment to develop a carbon positive society, which will serve as a beacon for sustainable living.