ACWA POWER Co. Announces the signing of the Limited Notice To Proceed (“LNTP”) Agreements in relation to the Engineering, Procurement And Construction (“EPC”) contract for the NEOM Green Hydrogen Project
| Element List | Explanation |
|---|---|
| Introduction | ACWA POWER Company announces the signing of the LNTP Agreements in relation to the EPC Contract for the NEOM Green Hydrogen Project, the largest green ammonia project in the world to be located in NEOM, in the Kingdom of Saudi Arabia, with an expected capacity of 1.2 Million Tons per annum of green ammonia. ACWA Power Company owns 33.3% of the NEOM Green Hydrogen Company, alongside Air Products (33.3%) and NEOM Company (33.4%). The LNTP Agreements will include: - In Kingdom LNTP in relation to the EPC contract between NEOM Green Hydrogen Company and Air Products Middle East Industrial Gases LLC; - Out of Kingdom LNTP in relation to the EPC contract between NEOM Green Hydrogen Company and Air Products Equipment limited; - Parent Company Guarantee And Co-Ordination Deed for the LNTP in relation to the EPC contract between NEOM Company; ACWA POWER Company; Air Products Saudi Arabia Investment Company; Air Products Equipment limited; Air Products Middle East Industrial Gases LLC; Air Products and Chemicals, Inc. |
| Date of Announcement of the Award | 2022-04-03 Corresponding to 1443-09-02 |
| Contract Subject Matter | Limited Notice To Proceed in relation to the Engineering, Procurement And Construction Contract for the NEOM Green Hydrogen Project |
| Date of Signing the Contract | 2022-03-04 Corresponding to 1443-08-01 |
| Contract Value | 900 Million USD |
| Contract Details | LNTP in relation to the EPC contract for the NEOM Green Hydrogen Project |
| Contract Duration | .6 months |
| Financial Impact and the Relevant Period | If Financial Close is never achieved and project is abandoned, a maximum aggregate exposure can reach up to 300 million USD to ACWA Power Company under the LNTP in relation to the EPC contract for the NEOM Green Hydrogen Project |
| Related Parties | NEOM Company. |
| Additional Information | Neom Green Hydrogen Project, jointly developed by ACWA Power, Air Products and NEOM, will be the largest green hydrogen production facility in the world, that will use over 4GW of combined renewable energy capacity to generate the power used for producing green hydrogen. |
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