Air Products announced the financial close and transfer of the second group of assets for the $12 billion gasification and power joint venture (JV) with Aramco, ACWA Power and Air Products Qudra in the Jazan Economic City (“Jazan”), Saudi Arabia. 

The JV’s purchase of this second group of assets at Jazan follows the successful asset acquisition and project financing transactions for the first group of assets completed in late October 2021. 

The JV owns and operates the facility under a 25-year contract for a fixed monthly fee, with Aramco supplying feedstock to the JV, and the JV producing power, steam, hydrogen and other utilities for Aramco.

The JV serves Aramco’s Jazan Refinery, a megaproject to process 400,000 barrels per day of the crude oil to produce the main products such as ultra-light sulphur diesel, gasoline, and other products.

Air Products will invest $4.5B to build-own-operate the world’s largest blue hydrogen production facility, producing over 750 MMSCFD of blue hydrogen in Louisiana, USA. A portion of the blue hydrogen will be compressed and supplied to customers by our U.S. Gulf Coast pipeline network; the balance will be used to make blue ammonia that will be transported around the world and converted back to blue hydrogen for transportation and other markets.

The megaproject will also capture over five million metric tons per year of CO₂, making it the largest carbon capture for sequestration facility in the world. Numerous studies have shown that Louisiana’s geology is some of the best in the world for permanent geologic sequestration.

The project is expected to be operational in 2026. 

An equal production joint venture of ACWA Power, Air Products and NEOM incorporated in August 2021, NEOM Green Hydrogen Company (NGHC) is establishing the world’s largest green-hydrogen-based ammonia production facility run on renewable energy. This mega-plant will produce up to 600 tonnes of carbon-free hydrogen per day in the form of green-ammonia as a cost-effective solution for transportation globally.

Air Products is the primary EPC contractor and will be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.