Allen & Overy has advised the credit providers on the financing of the groundbreaking NEOM Green Hydrogen Project in the Kingdom of Saudi Arabia, the world’s largest commercial-scale green hydrogen production facility to reach financial close.
The NEOM Green Hydrogen Company (an equal joint venture between ACWA Power, Air Products and NEOM) secured an innovative USD6.1 billion financing package comprising both senior and mezzanine facilities provided by 23 financial institutions, including Saudi Industrial Development Fund (SIDF), National Infrastructure Fund (NIF) and local, regional and international banks.
The project is widely considered to be one of the most significant energy transition projects in the world. Up to 4GW of renewable energy assets consisting of onshore solar, wind and battery storage is expected to produce up to 600 tonnes per day of green ammonia which will be supplied to global markets. When complete, the project will mitigate the impact of 5 million metric tonnes of carbon emissions per year.
Allen & Overy advised on all aspects of the development and financing of this project, including a Euler Hermes tranche, a SIDF tranche and a NIF tranche which each sit alongside the conventional and Islamic bank facilities. The legal team also advised in relation to the full suite of project contracts, including the world’s first project financed large scale green ammonia offtake contract.
The Allen & Overy team advising on the transaction was led by partners Michael Diosi (London), Ian Ingram-Johnson (Dubai) and Xue Wang (Tokyo) alongside counsel Rachel O’Reilly (London), and included partners Troy Edwards (London), Matthew Townsend (London), Wolfgang Meltzer (Frankfurt), Parya Badie (London) and Chris Angus (Dubai), with senior associates Thomas Bramah (Dubai), Jason Symington (London), Chinedu Ihenetu-Geoffrey (London), Christine Yassa (Abu Dhabi), Moritz Meister (Frankfurt/Los Angeles), Tobias Wintermantel (Frankfurt), Daniel Smith (London), associates Sheza Tariq (London), Harry de Lacey (London), Maxine Ma (Tokyo), Valentine Nguhi (London), Michel Abi Saab (London), Danae Wheeler (London), senior legal transaction executive Svitlana Teush (London), trainees Raees Khan (Dubai), Tarafa Holford (London) and senior legal project managers Joe Ward (London) and Hayley Cloherty (Dubai) from our Project Management Office.