Issue link: https://digital.shearman.com/i/1482295
Spotlight on NEOM's Green Ammonia Export Megaproject THE NEOM GREEN HYDROGEN PROJECT (PROJECT HELIOS) WILL BE THE LARGEST GREEN ENERGY PROJECT IN GLOBAL HISTORY, AND THE FIRST HYDROGEN EXPORT MEGAPROJECT TO COMMENCE CONSTRUCTION. We are advising NEOM on all aspects of its $6.5 billion world-scale green hydrogen and green ammonia production facility. The project is powered by 4 GW of renewable electricity (solar and wind) and is both the largest renewables project in history, as well as the largest hydrogen plant and the largest ammonia plant in history. The power is directly connected to a 2.2 GW electrolyser, the world's largest. The project is a joint venture between NEOM Company (our client), Air Products and ACWA Power. Located at NEOM in the Kingdom of Saudi Arabia, it will produce green hydrogen and green ammonia fuels in various forms for export to global markets. $1 billion has already been invested by the sponsors and construction has commenced under a limited notice to proceed. Our work on the project includes advising on all aspects of the commercial project documents, as well as the financing, which will be one of the largest project financings ever in the Middle East, as well as the first project financing of a green energy export project. The financing is expected to achieve financial close in Q4 2022. We are the only law firm to have worked from day one on all aspects of this project. BACKGROUND TO THE PROJECT Announced June 2020 Scheduled to be onstream in 2025 Involves approx. 4 GW of captive greenfield wind and solar generation 2.2 GW of electrolysis using Thyssenkrupp technology Located in NEOM, a new $500 billion city being developed in Northwest Saudi Arabia, bordering Jordan and the Red Sea To produce 1.2 million tons per year of green ammonia using Haldor Topsoe technology NEOM, ACWA and Air Products each own one third of the Project Air Products to offtake 100% of green ammonia for distribution around the world to produce green hydrogen for the transportation market WE HAVE ADVISED ON ALL ASPECTS OF PROJECT HELIOS, INCLUDING: Initial MOU 1 JV structuring 2 IP licensing 4 Marketing and regulatory matters (including interaction with European regulation such as RED II, as well as regulation in the United States and key Asian countries) 5 Offtake 6 Utilities supply 7 Land arrangements 8 Export arrangements 9 Ensuring bankability of documents for project financing 10 Project financing process 11 O&M arrangements 12 EPC, including electrolyser and ammonia loop procurement 3 With 50 attorneys in every region of the world, our Global Hydrogen Industry Team is ready to support hydrogen projects across the value chain, wherever your opportunities are located. 3 Awarded 'Green Project of the Year' at the Global Hydrogen Summit, 2021