Baker Botts with Air Products in $8.4B Green Hydrogen Facility Financing

Air Products and Chemicals Inc. (Air Products), a manufacturer of industrial gases and chemicals, has successfully achieved full financial close for the world’s largest carbon-free green hydrogen production facility. With a total investment value of USD 8.4 billion, this groundbreaking project will be realised through the NEOM Green Hydrogen Company (NGHC), an equal joint venture involving Air Products, ACWA Power, and NEOM. 

Baker Botts, supported by a cross-border team of lawyers in London and the Middle East, led by global projects partner Stuart Jordan (pictured), provided comprehensive legal counsel to Air Products throughout the development. The advisory covered various aspects, including the joint venture, offtake agreements, and engineering, procurement, and construction (EPC) contracts. 

Located in Saudi Arabia’s NEOM region, the plant at Oxagon will harness up to 4GW of solar and wind energy to produce approximately 600 tonnes of carbon-free hydrogen per day. This green hydrogen will be converted into green ammonia, offering a cost-effective and sustainable solution for global transportation and industrial sectors. 

NGHC has also finalized the EPC agreement with Air Products, designating them as the nominated contractor and system integrator for the entire facility. Notably, the project’s non-recourse financing structure has been certified by S&P Global, aligning with green loan principles and representing one of the largest project financings under the green loan framework. Air Products has already awarded significant contracts to technology and construction partners. 

Furthermore, NEOM Green Hydrogen Company secured an exclusive 30-year off-take agreement with Air Products for all the green ammonia produced at the plant. This partnership will unlock the economic potential of renewable energy, driving sustainable development across the entire value chain. 

Baker Botts Lawyers/Offices Involved Global Projects: Stuart Jordan (partner, London); Shadi Haroon (partner, Riyadh); Nick Collins (partner, London); Alex Kerr (partner, London); Mark Rowley (partner, London); Ed Hills (special counsel, London); Mike Walton (senior associate, London); Ciaran Mcilwham (associate, London); Inaya Homoud (associate, London); Nazia Begum (associate, London) and for Intellectual Property Neil Coulson (partner, London). 

Global law firm White & Case and The Law Office of Megren M. Al-Shaalan have provided legal counsel to NEOM Green Hydrogen Company in the matter.  For further information about the team click here.

Allen & Overy has advised the credit providers of the financing 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. For further information about the team click here.