ACWA Power, listed on the Saudi stock market, announced the signing of the Limited Notification Agreement (LNTP), with a contract value of $900 million, for a period of 6 months. A green ammonia project in the world, with an expected production capacity of 1.2 million tons per year of green ammonia, where ACWA Power owns a net stake of 33.3% of NEOM Green Hydrogen Company, in addition to Air Products, which also owns 33.3%, and NEOM Company, which owns 33.4% The contract value is $900 million for a 6-month contract period, according to a statement by the company today.
The limited notice agreement includes: limited notice within the Kingdom to proceed with respect to the engineering, procurement and construction contract between NEOM Green Hydrogen Company and Air Products Middle East Industries Gas Limited, and limited notice outside the Kingdom to proceed with respect to the engineering, procurement and construction contract between NEOM Green Hydrogen Company and Air Products Equipment Limited along with the Parent Company’s Warranty and Limited Notice Coordination Document to move forward with respect to the EPC Contract between NEOM, ACWA Power, Saudi Arabian Air Products Investment Company, Air Products Equipment Limited, and Air Products Middle East Industry Qaz Limited , Air Products and Chemical Corporation.
The financial impact will be reversed if the financial closure is never achieved and the project is abandoned, the maximum total exposure could be up to $300 million for ACWA Power under the limited notice agreement to move forward with respect to the EPC contract for the NEOM Green Hydrogen Project
The NEOM Green Hydrogen Project, developed by ACWA Power, Air Products and NEOM, will be the largest green hydrogen production facility in the world, using 4 gigawatts of renewable energy to provide green hydrogen production capacity.