Air Products’ offtake model sets investment example for major projects

Air Products’ pivotal involvement in the upcoming NEOM project was held up as a role model for future megaprojects at the Abu Dhabi MENA Industrial Gases Conference 2022.

David Edmondson, CEO of NEOM Green Hydrogen Company (NGHC), said, “Air Products is an investor in the joint venture, and also the offtaker – and that’s a huge benefit in bringing a multi-million-dollar investment into reality, as you now have a guaranteed offtaker for the next 30 years, and that’s what gives the investment community the confidence that this project will actually go ahead. A lot of the projects being announced right now are very aspirational but the offtaker has still got to be defined.”

Air Products will act as the EPC contractor and overall systems integrator, he added. “It’s not just a question of buying in power, putting it into an ammonia plant and seeing how much ammonia you can produce, you’re trying to work out the lowest cost of ammonia, so optimising how much wind, how much solar power you want, and translating that into the lowest cost of ammonia.”

Edmondson said construction is advancing at NEOM, which is targeting 600 tonnes of green hydrogen daily.

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