Air Products is part of the Neom green hydrogen JV and its sole offtaker
Neom project cost balloons to $8.5bn
The three JV participants have also opted to shake up project financing, according to co-developer Air Products
Saudi Arabia’s flagship Neom green hydrogen project has seen its cost rise from an original estimate of $5bn to $8.5bn, co-developer industrial gases firm Air Products revealed in its Q1 earnings call. Inflation since 2020 accounts for c.$500mn of this increase, while the other $3bn is spread between additional costs, including project financing and “scope to make the project more self-sufficient and lower operating costs”, the US company says. The three joint venture participants—Air Products, Saudi government-affiliated Acwa Power and state developer Neom—have opted to shake up the project’s financing structure, and will now fund it with 25pc cash and 75pc non-recourse financing. This take
Also in this section
4 October 2024
Boost for CCUS and blue hydrogen projects as government confirms funding for HyNet and East Coast clusters
3 October 2024
The stakes are high for project developers as they choose which hydrogen molecule or derivative with which to target future markets
2 October 2024
The fuel’s inroads in maritime fuel market hamper efforts to secure demand for synthetic fuel, German utility Uniper tells World Hydrogen Congress
27 September 2024
A new realism is shaping the ambitions of the clean hydrogen industry after years spent overstating its decarbonisation potential
