L&T Construction Secures Contract for NEOM's Green Hydrogen Plant
L&T Construction, a leading engineering and construction company, has been awarded a significant contract to develop renewable energy infrastructure for the world's largest green hydrogen plant at NEOM. The announcement was made through a filing on the Bombay Stock Exchange (BSE), highlighting L&T's role in this groundbreaking project.
According to the filing, L&T will be responsible for engineering, procurement, and construction of various components, including a 2.2 GWac PV solar plant, 1.65 GW wind generation balance of plant, and a 400 MWh battery energy storage system. These renewable energy facilities will be established at Oxagon, located in the NEOM region of Saudi Arabia.
The NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products, and NEOM, is leading the initiative to develop this mega green hydrogen plant. In addition to the renewable energy infrastructure, L&T will also construct three 380 kV switching stations, install 306 kilometers of 380 kV overhead lines and underground cables, and implement the Energy Power Monitoring System (EPMS) for the complete grid network.
The total value of the awarded packages to L&T amounts to a significant $2.779 billion. S N Subrahmanyan, Chairman Designate and Managing Director of Larsen & Toubro, expressed enthusiasm about the project's potential to accelerate the global energy transition. He highlighted that these technology-led initiatives align with L&T's growth aspirations and demonstrate the company's commitment to professionalism, timely delivery, and quality.
The NGHC aims to establish a large-scale green hydrogen production plant for global export in the form of green ammonia, with an impressive investment of $8.4 billion. The project has successfully achieved full financial close and is now progressing with the construction phase. The ambitious endeavor has garnered support from 23 local, regional, and international banking and financial institutions, underscoring its significance in the renewable energy landscape.
L&T's involvement in this groundbreaking project further solidifies their position as a key player in the renewable energy sector. Their partnership with NGHC highlights the importance of having reliable and experienced partners to drive the global energy transition. David R Edmondson, CEO of NEOM Green Hydrogen Company, expressed excitement about working with Larsen & Toubro on the development of green hydrogen generation, grid infrastructure, and storage, emphasizing the significance of their collaboration.
He sid "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".
In summary, L&T Construction's contract for developing renewable energy infrastructure for NEOM's green hydrogen plant marks a significant milestone in the global energy transition. With their expertise and commitment to delivering high-quality projects, L&T is poised to contribute to the success of this groundbreaking initiative, which will pave the way for a sustainable and greener future.