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Construction of $5 billion in the northwest of the kingdom has begun.
Funding for a green hydrogen allocation in Neom, Saudi Arabia, which is expected to be one of the world’s largest, could be finalized in the coming months, according to ACWA Power Co.
Construction of the $5 billion plant in the northwest of the kingdom has begun and is “well on track” to finish as scheduled in 2026, ACWA leader Paddy Padmanathan said in an interview.
Saudi Arabia’s largest renewable energy corporation is a member of the consortium leading the project. Other corporations come with the U. S. corporation Air Products.
“We plan to complete the investment before the end of this year,” Padmanathan said at the COP27 climate summit in Egypt. “We’re almost done. “
Financial partners have invested about $900 million of their money, he said.
Saudi Arabia must be the world’s largest hydrogen exporter. The fuel emits only water vapor when burned, making it less polluting than oil, herbal fuel, and coal. the market may be worth $700 billion a year through 2050 if brands can cut costs, according to BloombergNEF.
The green of the fuel is produced when solar and wind energy are used to separate water atoms. State-owned energy company Saudi Aramco is leading the kingdom’s efforts to produce blue hydrogen, which is obtained by converting herbal fuel and capturing the carbon dioxide emitted in the process. .
Inflation challenge
Rising interest rates and inflation have been “very difficult” for Neom and other renewable projects, Padmanathan said. Supply chains have been disrupted by the coronavirus pandemic and conflict in Ukraine, which has increased the value of equipment, he said.
Earlier this month, he told Bloomberg that the costs of solar power projects would rise over the next five to seven years. However, he is “not concerned” that the appeal of renewables will be affected by fossil fuels, whose costs have skyrocketed this year.
“Every country we paint with, and paint in thirteen countries, says, ‘How much more renewables can you give me, faster?'” he said at Egypt’s Sharm el-Sheikh hotel. “Everyone knows that the renewable energy trajectory is the right way to go. Not for the planet but also for profits.
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