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Air Products, ACWA Power and NEOM Sign Agreement for $5 Billion Production Facility in NEOM Powered by Renewable Energy for Production and Export of Green Hydrogen to Global Markets

The World’s Largest Green Hydrogen Project Will Supply 650 Tons Per Day of Carbon-Free Hydrogen for Transportation Globally and Save the World Three Million Tons Per Year of CO2

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Air Products, in conjunction with ACWA Power and NEOM, announced the signing of an agreement for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy. The project, which will be equally owned by the three partners, will be sited in NEOM, a new model for sustainable living located in the north west corner of the Kingdom of Saudi Arabia, and will produce green ammonia for export to global markets.

Air Products, ACWA Power and NEOM Sign Agreement for $5 Billion Production Facility in NEOM Powered by Renewable Energy for Production and Export of Green Hydrogen to Global Markets

Air Products, ACWA Power and NEOM megaproject will produce green ammonia for supply of carbon-free hydrogen to global markets.

The joint venture project is the first partnership for NEOM with leading international and national partners in the renewable energy field and it will be a cornerstone for its strategy to become a major player in the global hydrogen market. It is based on proven, world-class technology and will include the innovative integration of over four gigawatts of renewable power from solar, wind and storage; production of 650 tons per day of hydrogen by electrolysis using thyssenkrupp technology; production of nitrogen by air separation using Air Products technology; and production of 1.2 million tons per year of green ammonia using Haldor Topsoe technology. The project is scheduled to be onstream in 2025.    

Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market. 

“We are honored and proud to partner with ACWA Power and NEOM and use proven technologies to make the world’s dream of 100 percent green energy a reality,” said Seifi Ghasemi, Chairman, President and Chief Executive Officer for Air Products. “Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.” 

Mohammad A. Abunayyan, ACWA Power Chairman, said, “Stemming from our belief in Vision 2030 and HRH Crown Prince Mohammed bin Salman’s aspirations for NEOM to become the global pioneer in sustainable living, the Board of Directors and Management of ACWA Power are proud to take part in this groundbreaking and first-of-its-kind investment in the world. ACWA Power has a proven track record of leveraging pioneering renewable technologies to deliver carbon-free power at the lowest cost. With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits. Based in NEOM’s Industrial Cluster, and enabled by its unique mandate, this investment will integrate and localize cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.” 

NEOM CEO, Nadhmi Al Nasr, said, “This partnership reflects our deep commitment to developing a carbon positive society which will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world. This demonstrates the   ability of NEOM to generate significant partnership opportunities for international and national investors. This is a pivotal moment for the development of NEOM and a key element in Saudi Vision 2030 contributing to the Kingdom’s clean energy and circular carbon economy strategy. As the world’s largest renewable hydrogen project, NEOM’s Board of Directors, headed by HRH Crown Prince Mohammed bin Salman, and the company’s Executive team are delighted to announce this significant milestone for NEOM in becoming a global leader in green hydrogen production and green fuels. We are also excited that two world-class organizations, Air Products and ACWA Power, have joined us in developing this major project, the first of many developments at this scale that will put NEOM at the heart of a new future society.”

Air Products Investor Call to Discuss This Project: 8:30 a.m. USET on July 7, 2020
 
*Air Products’ Investor Call Details
Air Products will hold a conference call on Tuesday, July 7, 2020 at 8:30 a.m. USET to discuss the project. The teleconference will be open to the public and the media in listen only mode by telephone and Internet broadcast. 

Live teleconference: 323-994-2082
Passcode: 3757916
Internet broadcast/slides: Available on the Event Details page on Air Products’ Investor Relations website. 

Telephone replay: 888-203-1112 (domestic) or 719-457-0820 (international) 
Passcode: 3757916
Available from 12:30 p.m. USET on July 7, 2020 through 12:30 p.m. USET on July 14, 2020. 
Internet replay: Available on the Event Details page on Air Products’ Investor Relations website.

ACWA Power Media Inquiries:
Sabina Khandwani
Tel: +97156 5075710

ACWA Power Investor Inquiries:
Ozgur Serin
Tel: +97150 6455693

NEOM Inquiries:
media@neom.com
www.neom.com

About Air Products

Note

This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company’s Form 10K for its fiscal year ended September 30, 2019.

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