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May 22, 2023

King & Spalding acts for NEOM on US$8.4bn world-first green hydrogen and green ammonia megaproject

King & Spalding lawyers advised, from project inception to financial close, on all aspects of the world’s largest green hydrogen and green ammonia production facility, a USD8.4bn megaproject in Oxagon, Saudi Arabia. The project reached financial close on 22 May, 2023.

The project is being developed by the NEOM Green Hydrogen Company (NGHC), which is an equal joint venture by K&S client NEOM, ACWA Power and Air Products. The project will integrate up to 4GW of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen by the end of 2026, which will be exported in the form of green-ammonia for the transportation and industrial sectors globally. The King & Spalding lawyers’ work included negotiating all aspects of the joint venture arrangements, the utilities (power, water and land) agreements, all of the green hydrogen regulatory elements both inside Saudi Arabia and internationally, and the world’s first ever offtake contract for green ammonia export.

The project is backed by a USD 6.1 billion non-recourse financing from 23 local, regional and international banks and financial institutions. More information can be found here.

King & Spalding advised NEOM with a team led by Dan Feldman (Abu Dhabi) and included Brendan Hundt (Dubai/Abu Dhabi), Nikhil Markanday (London), Zoë Bromage (Singapore), Fred Lazell and Hani Zedan (both London).