L&T achieves key milestones on $2.8bln NEOM plant packages

Jul 11, 2023

The project is being developed by NEOM Green Hydrogen Company (NGHC), a joint venture between between Saudi utility project developer Acwa Power, global industrial gases leader Air Products and NEOM

India's top engineering and construction firm Larsen & Toubro (L&T) has announced that one of its key units - Power Transmission and Distribution (T&D) - has achieved major milestones with regard to the $2.8 billion power elements and grid packages for setting up the world's largest green hydrogen plant in Saudi futuristic city NEOM.

The project is being developed by NEOM Green Hydrogen Company (NGHC), a joint venture between between Saudi utility project developer Acwa Power, global industrial gases leader Air Products and NEOM.

NGHC is setting up the mega plant to produce green hydrogen at-scale for global export in the form of green ammonia at a total investment of $8.4 billion.

Supported by 23 local, regional, and international banking and financial institutions, the project has now achieved full financial close, and construction is moving forward.

A few quarters back, L&T said it had received the nod to establish the Renewable Energy Generation, Storage and Grid infrastructure, from Air Products, the system integrating EPC contractor and exclusive off-taker of green ammonia to be produced from the project.

The value of the packages awarded to L&T aggregate to $2.779 billion. Since then, significant progress has been achieved in various activities including surveys, design & engineering, establishment of temporary facilities and procurement of long lead items, it stated.

Under these contracts, T&D business will engineer, procure, and construct a 2.2 GWac PV solar plant, 1.65 GW wind generation balance of the facility as well as a 400 MWh Battery Energy Storage System at Oxagon, a key development within the NEOM and also be home to advanced and clean industries with industrial innovation at its core.

It will also construct three 380 kV switching stations in addition to setting up 306 km of 380 kV overhead lines and UG cables required for the kingdom's grid network, said the Indian construction giant.

The scope also includes the Energy Power Monitoring System (EPMS) for the complete network, it added.

Lauding the bold vision of the kingdom and the project proponents, Chairman designate and Managing Director SN Subrahmanyan said: "Such initiatives at scale have the potential to speed up global energy transition. Also, these technology-led projects are aligned with L&T's aspirations towards propelling our next wave of growth and reflect the customer's trust in our commitment to professionalism, timely delivery, and quality."

Commenting on the development, T Madhava Das, Whole-Time Director & Senior Executive Vice President (Utilities), said, "We are proud to be Sensitivity: Unclassified associated with the project that will integrate 4GW of renewable energy to enable production of up to 600 tonnes of carbon-free hydrogen per day."

In a recent statement, Wolfgang Brand, Vice President of NEOM Green Hydrogen from Air Products, expressed delight at the progress being made towards the world's largest green hydrogen production facility in NEOM.

"We are pleased to commence the full execution of this lighthouse project and are proud to work with our partner L&T in their ambition to produce carbon-free hydrogen using renewable energy," remarked Brand.

NEOM Green Hydrogen Company CEO David R. Edmondson said: "We are excited to be leading the global energy transition and having the right partners is essential in making this happen, so we are thrilled to be working with L&T on our green hydrogen generation, grid infrastructure and storage."

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