4000 MW Renewable Energy Project for NEOM to Come Up Near Jordan Border

The renewable energy projects that are being planned by Saudi Arabia to supply electricity to the green hydrogen based ammonia plant in the city of NEOM appear to have been disclosed. As per media reports, the renewable energy projects will be located in the North-West region of Saudi Arabia. It will be developed near the Jordan border to help the development of the $6.5 billion ammonia plant.

There are four firms in race for the contract of the renewable energy project- Energy China, Power China Huadong, Sepco 3, and Larsen and Toubro India. The contracts can be awarded by the end of April, 2022.

According to the reports engineering, procurement and construction (EPC) contract for the renewable projects will be awarded in a single go. The renewable project will consist of solar and wind power installations. The total capacity of the projects will be 4,000 MW. There will be a transmission network running about 190km. A battery energy storage system is also envisaged with other tenets of the project.

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The consortium which is developing the green hydrogen supported ammonia plant, in process of assessing the tendered bids for the construction of the green hydrogen and ammonia plant. The prospective award for the plant will be of $600 million.

Players that are in the race for the contract of the plant include China Tianchen Engineering Corporation, Consolidated Contractors Company from Lebanon and Nasser S Al-Hajri Corporation of Saudi Arabia.

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The Kingdom of Saudi Arabia is projecting NEOM city as a hub of green hydrogen. In the recently held World Hydrogen MENA conference in Dubai, participants and panelists showed interest in the multi-billion dollar green hydrogen-to-ammonia project as an emerging leader in the region.

Recently, utility developer ACWA Power has also signed an agreement for the development of the NEOM project. The EPC agreement is worth $900 million. It will be a joint venture for the renewable project aimed at producing 1.2 million tonnes of green ammonia every year.