NEOM firm exploring ‘uncharted territory’ to make world’s largest green hydrogen plant a reality: CEO

David Edmondson, CEO of NEOM Green Hydrogen Co. (Supplied)
Short Url
Updated 22 May 2023

NEOM firm exploring ‘uncharted territory’ to make world’s largest green hydrogen plant a reality: CEO

RIYADH: In a move to help Saudi Arabia achieve its sustainability goals, NEOM Green Hydrogen Co. is breaking new ground in order to start the full-time operation of the world's largest green hydrogen plant in 2026.

In an interview with Arab News, David Edmondson, CEO of NGHC, said the company is ready to face any challenges that may arise while building this hydrogen plant which could revolutionize the ongoing energy transition journey. 

“We are building the world’s largest plant to produce green hydrogen at scale. As a first-of-its-kind facility, and with key learnings not available to us with no other similar facilities in the world, we are very much navigating uncharted territory in the green hydrogen and sustainable energy space,” said Edmondson. 

He acknowledges that projects of this scale come with challenges but “we have already hired some great talent.” 

With the support of its shareholders and commitment from its technology partners, Edmondson said the company is “prepared for any scenario by leveraging the experience and expertise of everyone supporting us on the project.” 

The firm behind the mega-plant, which will integrate up to 4 gigawatts of solar and wind energy to produce up to 1.2 million tons of green ammonia, achieved the financial closure on the project in NEOM’s industrial city Oxagon at a total investment value of $8.4 billion.

This came after it signed financial documents with 23 local, regional, and international banks and investment firms. 

“Together, these banks and financial institutions have committed to funding our investment and, alongside those from across the region and around the world, we are privileged that the Saudi Industrial Development Fund and National Infrastructure Fund are among those supporting us,” added Edmondson. 

An equal joint venture between ACWA Power, Air Products, and NEOM, NGHC’s mega-plant will produce up to 600 tons per day of carbon-free hydrogen by the end of 2026. 

NGHC has also concluded the engineering, procurement, and construction agreement with Air Products as the nominated contractor and system integrator for the entire facility. 

“This substantial financial backing from the investment community shows the unmatched potential of NGHC’s green hydrogen project. With the financial close announced today, we are taking a massive leap toward opening the plant, in line with NEOM’s vision to accelerate renewable solutions,” said Nadhmi Al-Nasr, chairman of NGHC and CEO of NEOM. 

Mohammed Abunayyan, chairman of ACWA Power, said the company is proud to support and facilitate the successful financial close of the much-anticipated green hydrogen facility in the Kingdom, which will contribute to the goals outlined in Vision 2030. 

“We have a proven track record of leveraging innovative solutions and advanced technology to deliver clean, sustainable power at the lowest cost. This is a significant step forward in our shared purpose to accelerate the shift to clean energy and support the Kingdom’s decarbonization goals,” said Abunayyan. 

Edmondson further noted that shareholders and the investment community are giving sufficient support to make this green hydrogen project a reality in the future. 

“The 23 banks and financial institutions referred to previously are providing $6.1 billion in non-recourse financing as part of the total value. Such substantial backing from the investment community shows the huge potential of our project to lead the world in tomorrow’s hydrogen revolution and we look forward to making this vision a reality with their support,” he added. 

He said that technology is a major enabler as this green hydrogen facility is getting ready for its operation, noting that NGHC’s technology partners were selected early in the project development phase to ensure that “we were able to ensure a seamless integration across the whole facility.” 

NGHC’s CEO pointed out that the Middle East and North Africa region has all the potential to become a global renewable powerhouse, as there are already large areas of land where projects can be developed with abundant access to sunlight and wind. 

“For the MENA region, becoming a global hydrogen powerhouse in the decades ahead is a realistic possibility. Over many decades, the region has gained enormous significance as a global producer and exporter of energy,” Edmondson told Arab News. 

He concluded: “As fossil fuel reliance wanes and demands for cleaner energy increase, the region has an opportunity to assume this position in the field of green hydrogen, green ammonia and low-carbon fuels in general, as well as establish world-class infrastructure and internationally recognized certification systems.” 

Technology revolution to transform 70% of global business practices, minister says

Updated 6 sec ago

Technology revolution to transform 70% of global business practices, minister says

RIYADH: Global estimates suggest that technology adoptions and expansion are set to transform 70 percent of business practices globally, according to a top official.

Speaking during the opening of the Human Capability Initiative held in Riyadh, Saudi Minister of Education Yousef bin Abdullah Al-Benyan highlighted that global estimates indicate a potential disruption of 40 percent of workers’ skills within the next four to five years thanks to these changes.

“During the next two days, over 250 global leaders and experts will join us to share their knowledge and insight on how to unleash potential for humankind capability and catalyzing international corporations to maximize resilience in times of uncertainty,” Al-Benyan said.

He added: “Technology adoptions and expansion are set to transform 70 percent of business practices globally. As economists continue to navigate these dynamic labor market landscape, it is more critical than ever to work inclusively to promote positive human capability outcomes.”

UAE economy to grow by 5% in 2024, minister reiterates 

Updated 34 min 16 sec ago

UAE economy to grow by 5% in 2024, minister reiterates 

RIYADH: The UAE’s economy is projected to grow by 5 percent in 2024, a leading member of the government has reiterated.

In an interview with Emirates News Agency, also known as WAM, Minister of the Economy Abdulla bin Touq Al-Marri said that more than 73 percent of the national economy is now non-oil, a historic first for the country.

His projection is in line with recent assessments by the Ministry of Finance and S&P Global, which forecast growth of 5.7 percent and 5 percent respectively.

“This achievement reflects the confidence of the private sector and investors around the world in the UAE’s investment environment,” Al-Marri said. 

The minister added that the private sector is a key pillar in the new economic and investment landscape and is at the heart of global changes and challenges. 

“And in implementation of the directives of the wise leadership, the UAE has identified the most sustainable and flexible economic sectors, which have reached more than 16 sectors, including health technology, agriculture, education, financial services, artificial intelligence, and other sectors that contribute to the sustainability of economic sectors and enhance the strength of the national economy,” Al-Marri highlighted.

More opportunities for women awaiting in the petrochemical industry: SABIC official

Updated 55 min 24 sec ago

More opportunities for women awaiting in the petrochemical industry: SABIC official

RIYADH: Saudi women should explore more opportunities in the petrochemical industry, as only 25 percent of the sector’s workforce are female, said a top official. 

Speaking at the Human Capability Initiative in Riyadh on Feb. 28, Faisal Al-Suwailem, executive vice president of corporate human resources at Saudi Basic Industries Corp., said that the industrial sector in the Kingdom has been witnessing a sharp rise in female employment over the past three years. 

“If we take a look at the petrochemical industry, in the last 20 years, I have seen a great increase in the participation of females in the petrochemical industry. However, if you look at the number of women in the petrochemical industry, it is still about 25 percent. So, I believe we still have room to grow,” said Al-Suwailem. 

He added: “In the industrial sector, the hiring of females has increased 93 percent over the last three years. We have right now over 63,000 females working in plants around the Kingdom.” 

Al-Suwailem further pointed out that Saudi Arabia has surpassed the female workforce target outlined in the Kingdom’s Vision 2030. 

“Let us first look at Vision 2030, and under the thriving economy for female participation in the labor market, the baseline target was set at 22.8 percent, and now we are at 34.5 percent,” said Al-Suwailem. 

He added that SABIC stands out as one of the companies offering structured training programs aimed at nurturing and enhancing the skills of young individuals.

Al-Suwailem also underscored that SABIC offers scholarship programs that provide equal opportunities for both men and women. 

“SABIC is a national champion for sure in petrochemicals, but it also has a proven record of being a national champion for development, job creation, learning and contribution to the gross domestic product,” said Al-Suwailem. 

He added: “SABIC’s scholarship program, which is meant for Saudi bright young talents, is right now equally split between men and women.” 

For her part, during the same panel discussion, Cabinet Secretary and Minister of Labor and Social Protection of Kenya Florence Bore said that the country is preparing its youth to adapt themselves to procure jobs in the international market. 

“Our focus currently is on labor migration, and even as you focus on labor migration, it is one of the areas where we get foreign remittances,” said Bore. 

She added: “Kenya has been undergoing lots of changes in the workplace. We have both the informal and formal jobs. The informal sector is really growing at a faster rate than the formal jobs. And because of that, you will find most of our Kenyans are now venturing out for jobs in the international market.”

Saudi Arabia’s tourism fund signs agreement with New Murabba  

Updated 28 February 2024

Saudi Arabia’s tourism fund signs agreement with New Murabba  

RIYADH: Financing and investment opportunities are set to rise in Saudi Arabia’s new downtown project, with the Tourism Development Fund signing an agreement with New Murabba Development Co.   

This memorandum of understanding aims to foster cooperation and contribute to the Kingdom’s social and economic growth by developing New Murabba, situated northwest of Riyadh.  

According to the agreement, the fund will explore direct financing or investment opportunities in the project through its partners, investors, or contractors, aligning with its policies and procedures, the Saudi Press Agency reported. 

The MoU was signed by Qusai Al-Fakhri, CEO of TDF, and Michael Dyke, CEO of New Murabba Development Co., a subsidiary of the Public Investment Fund. 

The collaboration will also include workshops to discuss potential cooperation opportunities, while New Murabba Development Co. will be responsible for qualifying the project’s infrastructure and foundation.  

Al-Fakhri emphasized the deal's significance in achieving the goals of Saudi Vision 2030, noting that New Murabba aims to provide an exceptional lifestyle, work, and entertainment experience.  

The MoU is an extension of several memoranda and cooperation agreements the fund has signed with the private sector, emphasizing the importance of collaborative work to achieve shared goals.   

Al-Fakhri noted that these agreements would support the TDF’s efforts to promote the tourism sector’s growth and diversity, attracting domestic and foreign investments to make tourist destinations a modern lifestyle model that attracts tourists and offers quality experiences.  

Dyke said that the deal aims to develop a modern downtown in line with Saudi Vision 2030’s goals noting that New Murabba’s design focuses on sustainability standards and life quality improvement, including green spaces, walking paths, and promoting health and sports concepts.   

He added that the project also aims to offer a unique living, working, and entertainment experience within a 15-minute walking radius, along with internal transportation means.  

Established in 2022 by Crown Prince Mohammed bin Salman, New Murabba Development Co. plays a crucial role in realizing Saudi Vision 2030. It focuses on developing a modern downtown centered around the iconic Cube building, redefining Riyadh’s cityscape. 

This initiative is designed to be a cultural symbol for Riyadh, featuring hotel and residential units, office spaces, and entertainment facilities, all incorporating the latest digital technologies. 

Central Bank of Jordan introduces new Shariah-compliant monetary policy tools 

Updated 28 February 2024

Central Bank of Jordan introduces new Shariah-compliant monetary policy tools 

RIYADH: Liquidity management in Jordan’s cash market is set to undergo a significant transformation as the country’s central bank introduces new tools for monetary policy. 

Aligned with Shariah laws, the Central Bank of Jordan has introduced these instruments in collaboration with Islamic banks operating within the country. The goal is to enhance the effectiveness and efficiency of liquidity management in the cash market, the Jordan News Agency reported. 

These new measures will not only assist Islamic banks in achieving more flexible liquidity management but also contribute to the establishment of an effective interbank market among them. 

Under the framework of these tools, the central bank will be able to provide Islamic banks with daytime liquidity, overnight liquidity, and liquidity extending up to one week.

This will be done based on the banks’ requests or at the apex bank’s initiative, allowing flexibility in terms of timing, amount, and duration. The Central Bank of Jordan will determine these parameters to align with its operational objectives in implementing monetary policy.  

This move by the central bank comes as part of its efforts to develop the operational framework of monetary policy and diversify the tools at its disposal. The decision is in line with the best practices of central banks and addresses the specific needs of the local cash and banking market, as reported by PETRA. 

In a related development, earlier in January, 16 Jordanian banks jointly launched the first private sector investment fund, committing $388 million to foster the growth of local businesses. 

The Jordan Capital and Investment Fund, established in 2021 with a capital commitment of 275 million dinars ($387.6 million), was officially registered under the 2022 Investment Environment Law, the state news agency reported. 

The instrument aims to inject money into emerging firms with growth, development, and expansion prospects, providing financing to enhance job opportunities and propel nationwide growth, as stated in an official statement reported by the Jordan News Agency. 

As the country’s first and largest private sector investment fund, it is designed to allocate funds to vital and promising sectors, such as food and health security, manufacturing, and information and communication technology. The objective is to harness Jordan’s potential in building the future, it added. 

At that time, Hani Al-Qadi, the chairman of the Jordan Capital and Investment Fund, had said the fund is crucial for achieving “accelerated growth” by fully leveraging Jordan’s economic potential.