Larsen & Toubro bags $2.8bn contract for NEOM green hydrogen plant

Larsen & Toubro (L&T) said that its power transmission and distribution business has bagged $2.78 billion worth power elements and grid packages of the world’s largest green hydrogen plant being built by NEOM Green Hydrogen Company.

Located at Oxagon in Saudi Arabia‘s region of NEOM, the project represents a major endeavor with a total investment of $8.4 billion. NGHC, an equal joint venture by ACWA Power, Air Products, and NEOM, is spearheading the establishment of the mega plant to produce green hydrogen at scale for global export in the form of green ammonia.

Supported by 23 banking and financial institutions, the project has achieved full financial close, paving the way for construction to move forward. A few quarters ago, L&T secured approval from Air Products to establish the Renewable Energy Generation, Storage, and Grid infrastructure.

Larsen & Toubro wins $2.8bn contract for NEOM green hydrogen plant in Oxagon. Photo courtesy of Batmaniacs/Wikimedia Commons.

T Madhava Das — Larsen & Toubro Whole-Time Director and Sr. Executive Vice President (Utilities) said: “We are proud to be associated with the project that will integrate 4GW of renewable energy to enable the production of up to 600 tonnes of carbon-free hydrogen per day.”

Under these contracts, L&T will engineer, procure, and construct a 2.2 GWac PV Solar Plant, 1.65 GW Wind Generation Balance of Plant, and a 400 MWh Battery Energy Storage System. The company will also be responsible for constructing three 380 kV Switching Stations, 306 km of 380 kV Overhead lines, and Underground Cables required for the Kingdom’s Grid network. The scope of work also includes implementing the Energy Power Monitoring System (EPMS) for the complete network.

The achievements signify significant progress made by L&T in various activities, including surveys, design & engineering, establishment of temporary facilities, and procurement of long lead items. The successful completion of these milestones showcases L&T’s expertise in renewable energy and its commitment to contributing to large-scale green hydrogen production.

The partnership between L&T and NGHC aims to reshape the future of the energy industry by promoting sustainable and carbon-free hydrogen production. By harnessing advanced technologies and leveraging strategic collaborations, the project aspires to set new standards and accelerate the global transition towards green energy.

David R. Edmondson — NEOM Green Hydrogen Company CEO said: “NGHC is excited to be leading the global energy transition and having the right partners is essential in making this happen, so we are thrilled to be working with Larsen and Toubro on our green hydrogen generation, grid infrastructure and storage.”