L&T bags EPC contract from NEOM

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

The contract was signed between NEOM Green Hydrogen Company (NGHC) — an equal joint venture created 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, NGHC announced.

As part of the contract, L&T will be responsible for the execution of the power grid and power generation works. The agreement has been signed as a limited notice to proceed (LNTP) agreement.

According to NEOM, the EPC contract signing is an “important milestone” as it advances the construction to be onstream by 2026.

Saudi NEOM signed facility agreements with domestic, foreign, and regional banks last week to finance the development of the biggest green hydrogen production facility in the world.

The finance agreement was signed together with a commitment letter with the Saudi Industrial Development Fund (SIDF), and the National Infrastructure Fund contributed significantly (NIF). The facility will be located in NEOM once it is completed.

In July 2020, NEOM signed a $5bn agreement with Air Products and ACWA Power for the green hydrogen facility.

Upon being operational by 2026, 100% of the green hydrogen produced by NEOM will be available for global export, in the form of ammonia, through an exclusive long-term agreement with Air Products.

Saudi NEOM’s mega-plant will integrate up to 4GW of solar and wind energy to produce up to 1.2 million tonnes of green-ammonia translating to up to 600 tonnes per day of carbon-free hydrogen.