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Allen & Overy advises the ECAs and lenders on USD8.4 billion financing of NEOM Green Hydrogen Project

Allen & Overy has advised the credit providers on the financing of the groundbreaking NEOM Green Hydrogen Project in the Kingdom of Saudi Arabia, the world's largest commercial-scale green hydrogen production facility to reach financial close. 

The NEOM Green Hydrogen Company (an equal joint venture between ACWA Power, Air Products and NEOM) secured an innovative USD6.1 billion financing package comprising both senior and mezzanine facilities provided by 23 financial institutions, including Saudi Industrial Development Fund (SIDF), National Infrastructure Fund (NIF) and local, regional and international banks.

The project is widely considered to be one of the most significant energy transition projects in the world. Up to 4GW of renewable energy assets consisting of onshore solar, wind and battery storage is expected to produce up to 600 tonnes per day of green ammonia which will be supplied to global markets. When complete, the project will mitigate the impact of 5 million metric tonnes of carbon emissions per year.

We have advised on all aspects of the development and financing of this project, including a Euler Hermes tranche, a SIDF tranche and a NIF tranche which each sit alongside the conventional and Islamic bank facilities. Our role also included advising in relation the full suite of project contracts, including the world’s first project financed large scale green ammonia offtake contract. This giga-project will pave the way for the many other green ammonia and green fuel projects currently under development in MENA and globally on which we are working.

Allen & Overy partner Michael Diosi, who co-led the Firm's team, said: “We are very proud to have supported the commercial banks, SIDF, NIF and Euler Hermes on this innovative and first-in-kind financing. The global energy transition is continuing to accelerate across the world and this industrial scale green-ammonia facility is a significant milestone on that journey that will undoubtedly pave the way for future development. Our congratulations go out to all stakeholders who have brought this project to life.”

A&O utilised a diverse deal team of multi-skilled professionals to seamlessly deliver successful financial close for our clients.  This included mobilising our global project management team to work side by side with our lawyers to ensure the effective management of project risks and the delivery timeline.

The Allen & Overy team advising on the transaction was led by partners Michael Diosi (London), Ian Ingram-Johnson (Dubai) and Xue Wang (Tokyo) alongside counsel Rachel O’Reilly (London), and included partners Troy Edwards (London), Matthew Townsend (London), Wolfgang Meltzer (Frankfurt), Parya Badie (London) and Chris Angus (Dubai), with senior associates Afsha Karim (Dubai), Filipa Serra (Madrid) Thomas Bramah (Dubai), Jason Symington (London), Chinedu Ihenetu-Geoffrey (London), Christine Yassa (Abu Dhabi), Moritz Meister (Frankfurt/Los Angeles), Tobias Wintermantel (Frankfurt), Daniel Smith (London), associates Sheza Tariq (London), Harry de Lacey (London), Maxine Ma (Tokyo), Valentine Nguhi (London), Michel Abi Saab (London), Danae Wheeler (London), senior legal transaction executive Svitlana Teush (London), trainees Raees Khan (Dubai), Tarafa Holford (London) and senior legal project managers Joe Ward (London) and Hayley Cloherty (Dubai) from our Project Management Office.

The NEOM Green Hydrogen Company (an equal joint venture between ACWA Power, Air Products and NEOM) secured an innovative USD6.1 billion financing package comprising both senior and mezzanine facilities provided by 23 financial institutions, including Saudi Industrial Development Fund (SIDF), National Infrastructure Fund (NIF) and local, regional and international banks.

The project is widely considered to be one of the most significant energy transition projects in the world. Up to 4GW of renewable energy assets consisting of onshore solar, wind and battery storage is expected to produce up to 600 tonnes per day of green ammonia which will be supplied to global markets. When complete, the project will mitigate the impact of 5 million metric tonnes of carbon emissions per year.

We have advised on all aspects of the development and financing of this project, including a Euler Hermes tranche, a SIDF tranche and a NIF tranche which each sit alongside the conventional and Islamic bank facilities. Our role also included advising in relation the full suite of project contracts, including the world’s first project financed large scale green ammonia offtake contract. This giga-project will pave the way for the many other green ammonia and green fuel projects currently under development in MENA and globally on which we are working.

Allen & Overy partner Michael Diosi, who co-led the Firm's team, said: “We are very proud to have supported the commercial banks, SIDF, NIF and Euler Hermes on this innovative and first-in-kind financing. The global energy transition is continuing to accelerate across the world and this industrial scale green-ammonia facility is a significant milestone on that journey that will undoubtedly pave the way for future development. Our congratulations go out to all stakeholders who have brought this project to life.”

A&O utilised a diverse deal team of multi-skilled professionals to seamlessly deliver successful financial close for our clients.  This included mobilising our global project management team to work side by side with our lawyers to ensure the effective management of project risks and the delivery timeline.

The Allen & Overy team advising on the transaction was led by partners Michael Diosi (London), Ian Ingram-Johnson (Dubai) and Xue Wang (Tokyo) alongside counsel Rachel O’Reilly (London), and included partners Troy Edwards (London), Matthew Townsend (London), Wolfgang Meltzer (Frankfurt), Parya Badie (London) and Chris Angus (Dubai), with senior associates Afsha Karim (Dubai), Filipa Serra (Madrid) Thomas Bramah (Dubai), Jason Symington (London), Chinedu Ihenetu-Geoffrey (London), Christine Yassa (Abu Dhabi), Moritz Meister (Frankfurt/Los Angeles), Tobias Wintermantel (Frankfurt), Daniel Smith (London), associates Sheza Tariq (London), Harry de Lacey (London), Maxine Ma (Tokyo), Valentine Nguhi (London), Michel Abi Saab (London), Danae Wheeler (London), senior legal transaction executive Svitlana Teush (London), trainees Raees Khan (Dubai), Tarafa Holford (London) and senior legal project managers Joe Ward (London) and Hayley Cloherty (Dubai) from our Project Management Office.

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