Air Products has paused the development of its \u00a32 billion ($2.7 billion) hydrogen export terminal at Immingham, UK, a facility deemed vital for the $8.4 billion Neom Green Hydrogen Project in Saudi Arabia. The decision arises from uncertainties regarding UK government incentives for imported green ammonia, which is a key component for shipping hydrogen.<\/p>\n\n\n\n
The Immingham terminal was projected to produce 76,000 tonnes of hydrogen annually, sufficient to power nearly a million homes or offset emissions equivalent to around 300,000 cars. Air Products, the exclusive buyer of hydrogen from the Neom initiative, stated that it seeks regulatory clarity before committing to substantial investments in Europe, including the Immingham project.<\/p>\n\n\n\n
The UK\u2019s current policy excludes green ammonia from subsidy schemes supporting domestic hydrogen production, which jeopardizes the financial viability of projects like Immingham. This leaves Air Products in a challenging position as it evaluates its European operations.<\/p>\n\n\n\n
Green hydrogen is produced through water electrolysis, while green ammonia\u2014more stable and economical for transport\u2014is derived from hydrogen. Upon arrival at its destination, the ammonia can be ‘cracked’ back into hydrogen for use. However, without appropriate policy support, the logistical and economic challenges of shipping hydrogen remain significant.<\/p>\n\n\n\n
The Neom Green Hydrogen Company, a joint venture involving Air Products, Neom, and Saudi-based Acwa Power, aims to produce 1.2 million tonnes of green ammonia per year at its facility in Oxagon, located in Saudi Arabia’s Tabuk province. Acwa Power has reported that construction is 85% complete, with operations expected to begin testing and commissioning next year. While the company has confirmed plans to export to Germany and Europe, there has been no mention of the UK in its agreements.<\/p>\n\n\n\n
Acwa Power signed a memorandum of understanding with Germany\u2019s Securing Energy for Europe, committing to supply green hydrogen to the continent. Air Products is also establishing receiving terminals in the Netherlands and Germany, further expanding its European footprint.<\/p>\n\n\n\n
Currently, the Neom project has only one confirmed offtake agreement with TotalEnergies for 70,000 tonnes of ammonia per year from 2030 to 2045, amounting to roughly a third of its anticipated production. Reports indicate that no additional buyers have been secured as of May.<\/p>\n\n\n\n
The Neom project, part of Saudi Crown Prince Mohammed Bin Salman\u2019s Vision 2030, has already encountered delays and budget cuts amid rising debt concerns. In early May, Air Products reported a $1.7 billion quarterly loss and signaled it would prioritize upstream projects in Saudi Arabia while postponing further European investments until market conditions show improvement.<\/p>","protected":false},"excerpt":{"rendered":"
Air Products has paused the development of its \u00a32 billion ($2.7 billion) hydrogen export terminal at Immingham, UK, a facility…<\/p>","protected":false},"author":4,"featured_media":768,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[587,226,142,439,358],"class_list":["post-769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-air-products","tag-ammonia","tag-hydrogen","tag-neom","tag-uk"],"yoast_head":"\n