Saudi Arabia’s ACWA expects NEOM hydrogen power plant financing in Q3

DUBAI, May 19 (Reuters) – Saudi utility developer ACWA Power (2082.SE), part-owned by the Sovereign Public Investment Fund, plans to close financing for a multi-billion green hydrogen plant of dollars in the third quarter, announced its managing director. said Thursday.

The kingdom, one of the world’s leading oil exporters, wants to become the biggest supplier of green hydrogen, aiming to produce around 4 million tonnes by 2030 as part of Crown Prince Mohammed bin Salman’s drive to diversify the economy.

“We should share some good news in the third quarter,” ACWA CEO Paddy Padmanathan told Reuters when asked about the closure of the project finance facility for the planned $5 billion plant. of dollars that is being built in the planned futuristic city NEOM.

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In a previous interview in October, Padmanathan expected funding to be in place in the first quarter.

Procurement and construction of the green hydrogen plant is underway and it is expected to be operational in the first quarter of 2026, Padmanathan said.

Several other factories are expected to follow as Saudi Arabia seeks to gain first-mover advantage and dominate the industry.

ACWA Power also plans to secure financing for the 700-megawatt Ar Rass solar photovoltaic power plant in Al Qassim province this year, Padmanathan said.

The CEO said that the effective blockage of the Black Sea following Russia’s invasion of Ukraine has caused problems in the delivery of large equipment to ACWA projects in countries such as Uzbekistan and Azerbaijan.

“Projects are stressed due to supply chain constraints. It’s not just about inflation anymore, it’s about availability,” Padmanathan said of ACWA projects in general.

Expected delays of around one to three months are manageable, he said, and the company is working with other partners, contractors and buyers to resolve issues as well as others caused by lockdowns in China. .

“We kind of pass (the) risk, if you want, to other parties who are better able to manage it, he said.

ACWA brought 10 projects online last year and expects between 7 and 10 to begin production this year.

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Reporting by Yousef Saba; Editing by Kirsten Donovan

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