Acwa Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has announced that its joint venture entity has closed a financing agreement worth $8.5 billion for a major green hydrogen project coming up at Saudi futuristic city Neom.

In addition to Acwa, Neom Green Hydrogen Company (NGHC) has US-based Air Products, a world leader in industrial gases, and developer of Neom as its JV partners.

The finance for the project will come from a combination of long-term debt and equity, stated Acwa Power in its filing to Saudi bourse Tadawul. 

The total financing consists of $5.85 billion senior debt and $475 million of mezzanine debt facilities, both arranged on a non-recourse project finance basis.

Meanwhile, an Acwa  Power-led consortium – including Haji Abdullah Alireza & Co (HAACO) and Al Moayyed Contracting Group (AMCG) – has emerged as the preferred bidder for the Rabigh 4 Independent Water Project (IWP) with a total capacity of 600,000 cu m per day.

The project for Saudi Water Partnership Company (SWPC), to be located 180 km northwest of Makkah on the Red Sea coast, will include the desalination plant and all associated infrastructure and facilities. It is due for completion in Q4 2025.