KfW IPEX-Bank has made an announcement regarding its financing involvement in the world’s largest green hydrogen project, which is currently being constructed in Saudi Arabia.
The project is being carried out by NEOM Green Hydrogen Company at Oxagon, situated in the Neom region of Saudi Arabia.
Once completed in 2026, this immense production plant will have the capability to annually generate an unprecedented amount of 1.2 million tonnes of green ammonia, thanks to its dedicated wind and solar farms.
Of the total investment volume, which exceeds $8.4 billion, approximately $6.1 billion is being provided as debt capital by a consortium consisting of 23 international and regional banks, as well as Saudi sovereign funds. KfW IPEX-Bank, with a contribution of $325 million, is one of the participants in this consortium.
The bank’s portion of the financing is primarily allocated to support the electrolysers supplied by ThyssenKrupp Nucera, a German company.
Euler Hermes, the German export credit agency, provides coverage for this part of the financing. In the overall financing structure, KfW IPEX-Bank is acting as the coordinator and agent for Euler Hermes.
The borrower for this project is NEOM Green Hydrogen Company, a joint venture in which ACWA Power, Air Products, and NEOM hold equal shares.
The electrolysers, which are a vital component of the project, have already become the largest ever built, boasting a capacity of 20MW each. To achieve a total output of 2.2GW, the plant interconnects 110 units of these electrolysers.
Velibor Marjanovic, a member of the management board of KfW IPEX-Bank, said “The reliable production of large quantities of green hydrogen plays a key role in global decarbonisation and the transformation to climate neutrality.”
“We are pleased to be able to contribute to this genuinely flagship project with our financing of cutting-edge German technology, underpinning our aspiration to drive forward global projects in the energy transition and the export of European technologies.”
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