Air Products, the US industrial gases and LNG equipment provider, has signed a deal in conjunction with ACWA Power of Saudi Arabia and a new smart city planned in the Kingdom for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy.
The location is Neom, a proposed cross-border city in the Tabuk Province of northwest Saudi Arabia.
It is planned to incorporate smart-city technologies and also function as a tourist destination. The site is near the Red Sea and the borders of Egypt and Jordan.
The joint venture project is the first partnership for Neom with leading international and national partners in the renewable energy field and Air Products said it would 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 four gigawatts of renewable power from solar, wind and storage,” said Air Products.
“There will be production of 650 tons per day of hydrogen by electrolysis using Thyssenkrupp technology and the production of nitrogen by air separation using Air Products technology,” it added.
The production of green ammonia will amount to 1.2 million tons per year using Haldor Topsoe technology. The project is scheduled to be onstream in 2025.
“Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to help produce green hydrogen for the transportation market,” said the Lehigh Valley, Pennsylvania-based company.
Air Products conducts its industrial gases business alongside its provision of LNG equipment products such as the main cryogenic heat exchangers for plants and its proprietary propane pre-cooled mixed refrigerant liquefaction process.
Most of the worldwide LNG production comes from Air Products technology and the company provides key equipment for the natural gas liquefaction process for large export plants, small and mid-sized plants and floating LNG facilities.
The company is also involved in Chinese industrial gases projects and other similar ventures in Saudi Arabia
“We are honored and proud to partner with ACWA Power and Neom and use proven technologies to make the world’s dream of 100 percent green energy a reality,” said Seifi Ghasemi, Chairman, President and Chief Executive for Air Products.
“Harnessing the unique profile of Neon’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,” added Ghasemi.
Mohammad A. Abunayyan, the Chairman of ACWA Power, said the project stems from Crown Prince Mohammed bin Salman’s aspirations for Neom to become the global pioneer in sustainable living.
“ACWA Power is proud to take part in this ground-breaking and first-of-its-kind investment,” stated Abunayyan.
“We have a proven track record of leveraging pioneering renewable technologies to deliver carbon-free power at the lowest cost,” he explained.
“With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits,” stated Abunayyan.
The project is based in Neom’s industrial cluster and is enabled by its unique mandate.
The investment is intended to integrate and localize cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.
