Deal Description: Air Products and Chemicals Inc. (Air Products), the world’s leading manufacturer of gases and chemicals for industrial uses, announced on May 22, 2023, the financial close on the world’s largest green hydrogen production facility at a total investment value of USD 8.4 billion.
NEOM Green Hydrogen Company (NGHC) is an equal joint venture by Air Products, ACWA Power and NEOM, building the world’s largest green hydrogen plant to produce green ammonia at scale.
A cross border team of Baker Botts lawyers in London and the Middle East, led by London-based global projects partner Stuart Jordan, advised Air Products in connection with all aspects of this ground-breaking development, which includes the joint venture, offtake and EPC contracts.
The plant is currently being built at Oxagon, in Saudi Arabia’s region of NEOM, and will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen, in the form of green-ammonia as a cost-effective solution for the transportation and industrial sectors globally.
NGHC has also concluded the engineering, procurement, and construction (EPC) agreement with Air Products as the nominated contractor and system integrator for the entire facility.
Additionally, NGHC announced that the non-recourse financing structured for the project has been certified by S&P Global (as the second party opinion provider) as adhering to green loan principles and is one of the largest project financings put in place under the green loan framework. Air Products has already awarded major contracts to various technology and construction partners.
NEOM Green Hydrogen Company also secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the facility, which will unlock the economic potential of renewable energy across the entire value chain.
Baker Botts Lawyers/Offices Involved:
Global Projects: Stuart Jordan (Partner, London); Shadi Haroon (Partner, Riyadh); Nick Collins (Partner, London); Alex Kerr (Partner, London); Mark Rowley (Partner, London); Ed Hills (Special Counsel, London); Mike Walton (Senior Associate, London); Ciaran Mcilwham (Associate, London); Inaya Homoud (Associate, London); Nazia Begum (Associate, London).
Intellectual Property: Neil Coulson (Partner, London).
For more information, please see NEOM Green Hydrogen Company’s news release by clicking here.
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