White & Case partners Alec Johnson and Carina Radford, together with David Edmondson, the CEO of NEOM Green Hydrogen Company (NGHC), featured on PE Media Network's HE Live Podcast to discuss the NEOM Green Hydrogen Project, an equal joint venture between ACWA Power, Air Products and NEOM, developing the world's largest green hydrogen facility.
Carina and Alec co-led the Firm's team, which advised on all aspects of the landmark US$8.4 billion transaction.
Located in the NEOM region in the Kingdom of Saudi Arabia, the mega-plant will integrate up to four gigawatts of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen by the end of 2026, in the form of green-ammonia as a cost-effective solution for the transportation and industrial sectors globally.
Alec Johnson explains, "The Middle East has all of the ingredients needed to make it a key region for green hydrogen development."
Speaking on the size of the project, Carina Radford points out that the "finance appetite was clearly there" and that while the scale was unique and there was innovation within its commercial structure and operations, it was about rooting it in the familiar and highlighting that the individual parts like solar and wind farms or ammonia production had experienced players attached who knew the risks.
The NGHC will undoubtedly serve as a model for other green hydrogen projects in the region. Some of these projects might look a lot like NEOM and the offtake agreement will be key even if they won't be as fully integrated.
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