L&T bags Saudi NEOM EPC contract for green hydrogen project

Larsen & Tubro (L&T), an Indian multinational conglomerate, has won a major engineering, procurement, and construction (EPC) contract from Saudi Arabia’s NEOM to work on the world’s largest green hydrogen project.

According to NGHC, the contract was signed between NEOM Green Hydrogen Company (NGHC), an equal joint venture formed by ACWA Power, Air Products, and NEOM, its EPC contractor and system integrator Air Products (and joint venture partner), and sub-EPC construction partner L&T. L&T will be responsible for the execution of the power grid and power generation works as part of the contract. The agreement was signed as a limited notice to proceed (LNTP).

According to NEOM, the signing of the EPC contract is a “important milestone” because it advances the construction to be completed by 2026. Last week, Saudi NEOM signed facility agreements with domestic, foreign, and regional banks to finance the development of the world’s largest green hydrogen production facility.

The finance agreement was signed alongside a commitment letter with the Saudi Industrial Development Fund (SIDF), and the National Infrastructure Fund made significant contributions (NIF). Once completed, the facility will be located in NEOM. NEOM signed a $5 billion agreement with Air Products and ACWA Power for the green hydrogen facility in July 2020.

Through an exclusive long-term agreement with Air Products, 100% of the green hydrogen produced by NEOM will be available for global export in the form of ammonia once it is operational in 2026.Saudi NEOM’s mega-plant will use up to 4GW of solar and wind energy to produce up to 1.2 million tonnes of green ammonia, which equates to 600 tonnes of carbon-free hydrogen per day.

Shopping Cart
Scroll to Top