K&A advised the lenders on the financing of the world’s biggest green hydrogen plant being built by NEOM Green Hydrogen Company. Located at Oxagon, in Saudi Arabia’s region of NEOM, the mega plant will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen by the end of 2026.
Led by partners Karim Wali and Zeyad Khoshaim, and assisted by counsel Paul Matrosov and associate Saud Alqahtani, our team provided expert legal advice throughout this landmark project. As a joint venture between ACWA Power, Air Products, and NEOM, the deal reached financial close with a total investment value of USD 8.4 billion. The financial close was achieved with non-recourse financing of USD 6.1 billion from 23local, regional, and international banks and financial institutions.
The project's non-recourse financing has been certified by S&P Global as adhering to green loan principles, making it one of the largest project financings under the green loan framework. The NEOM Green Hydrogen Company has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products valued at USD 6.7 billion.
Another significant milestone is the secured exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, unlocking the economic potential of renewable energy across the entire value chain.
This matter further confirms K&A’s commitment to facilitating transformative projects that are pivotal for economic growth in Saudi Arabia, and follows K&A winning Project Finance Deal of the Year for Red Sea Development Company SAR 14.12bn Term Facility and Revolving Credit Facility at Capital Markets Saudi Arabia Awards 2022.