Neom project cost balloons to $8.5bn

The three JV participants have also opted to shake up project financing, according to co-developer Air Products

Saudi Arabia’s flagship Neom green hydrogen project has seen its cost rise from an original estimate of $5bn to $8.5bn, co-developer industrial gases firm Air Products revealed in its Q1 earnings call. Inflation since 2020 accounts for c.$500mn of this increase, while the other $3bn is spread between additional costs, including project financing and “scope to make the project more self-sufficient and lower operating costs”, the US company says. The three joint venture participants—Air Products, Saudi government-affiliated Acwa Power and state developer Neom—have opted to shake up the project’s financing structure, and will now fund it with 25pc cash and 75pc non-recourse financing. This take