Standard Chartered Grants Sustainable Guarantee for Saudi Arabia's NEOM Green Hydrogen Project
(MENAFN) audi Arabia's ambitious green hydrogen project, located at NEOM, has received a significant boost as Standard Chartered, the British bank, has provided the Kingdom's first sustainable guarantee. The guarantee ensures funding support for Larsen & Toubro, the project's contractor responsible for constructing the essential renewable energy infrastructure. NEOM Green Hydrogen Co., a joint venture between ACWA Power, Air Products, and NEOM, is spearheading the development of the world's largest green hydrogen plant at Oxagon.
Sustainable guarantees are crucial financial instruments issued by lending agencies to support environmentally positive projects. In this case, the guarantee reflects the project's commitment to producing green hydrogen and contributing to a more sustainable future. The megaplant is expected to produce green hydrogen at a large scale, with the intention of exporting it globally in the form of green ammonia. With an estimated investment of $8.4 billion, the project recently achieved full financial closure and has gained the support of 23 local, regional, and international banking and financial institutions.
Beyond the environmental benefits of reducing carbon emissions and promoting sustainable development within the Kingdom, this milestone represents a significant step towards Saudi Arabia's economic diversification efforts. By embracing green hydrogen technology, the country is expanding its energy portfolio and embracing innovative solutions to meet global demands and tackle climate change. The support from Standard Chartered and other financial institutions underscores the importance of financial and technological innovation in driving the global transition to a low-carbon economy.
Mohammad Salama, Standard Chartered's regional head of corporate, commercial, and institutional banking in the Middle East and North Africa, expressed the bank's satisfaction in issuing the first sustainable guarantee in Saudi Arabia. Salama emphasized the crucial role of technological and financial innovation in supporting the growth and development of green hydrogen, recognizing its significance in advancing the global transition to a more sustainable and low-carbon economy. The partnership between Standard Chartered and the NEOM Green Hydrogen project highlights the commitment of both entities to driving positive change and contributing to a greener future.
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