Air Products, OQ and ACWA Power Sign Joint Development Agreement Toward World-Scale Green Hydrogen-Based Ammonia Production Facility in Oman

Powered by Renewable Energy, Facility Would Produce Green Energy Products

ALLENTOWN, Pa. and MUSCAT, Oman and RIYADH, Saudi Arabia, May 26, 2022 /PRNewswire/ -- Air Products (NYSE: APD), OQ, Oman's leading integrated energy group, and ACWA Power (TADAWUL: 2082) today signed a joint development agreement (JDA) toward a multibillion-dollar investment in a world-scale green hydrogen-based ammonia production facility powered by renewable energy in Oman.

The JDA signing follows a memorandum of understanding signed in December 2021.

Envisioned for Oman's Salalah Free Zone, the joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia. 

It is anticipated that the green hydrogen-based ammonia production facility would be equally owned by the project partners.

Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi, said, "We are delighted and honored to work with the government of Oman to develop this multibillion-dollar project, which would be similar to the world-scale green hydrogen project we are implementing with our partners in NEOM in the Kingdom of Saudi Arabia. We look forward to applying our know-how, technology and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonizing the world."

Commenting on this venture, OQ Chairman Mulham Al Jarf said, "We are proud of our partnership with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers. The project fits well with the Sultanates' renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040."

ACWA Power Chairman Mohammad A. Abunayyan said, "As a company that is driving the transition towards a greener future through utilizing cutting-edge technologies and innovative solutions, we are extremely proud to support the Government of Oman's ambition to pursue decarbonization and advance the development of green hydrogen, considered to be the fuel of the future. Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate. Utilizing our global expertise, we were successfully able to launch Oman's first utility-scale renewable energy project. Oman continues to be a key market for ACWA Power for its potential, resources and location, making it a tremendous enabler for the production of green hydrogen. The signing of the joint development agreement is another milestone and signifies the continued trust being placed in ACWA Power by all our partners in bringing this ambitious project to life."

"We aim to leverage our proven track record, knowledge and expertise in developing sustainable global scale green projects including NEOM – a pioneering at-scale green hydrogen and ammonia facility, and we are confident of leading green hydrogen development globally through partnership and collaboration," Abunayyan added.

About Air Products

Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale low- and zero-carbon hydrogen projects supporting global transportation and the energy transition.

The Company had fiscal 2021 sales of $10.3 billion from operations in over 50 countries and has a current market capitalization of about $55 billion. More than 20,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.

Air Products' Cautionary Note Regarding Forward-Looking Statements: This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

About OQ

OQ is wholly owned by the Government of Oman through the Oman Investment Authority (OIA) and is Oman's leading integrated energy group with businesses operating across the energy value chain. OQ was established in 1996 to pursue investment opportunities in the energy sector both inside and outside Oman.

In June 2020, the Group announced the formation of its new Alternative Energy (AE) business unit. This new business unit is intended to leverage the Group's broad asset base, its integration capabilities and provide resilience and organic growth to OQ's business as well as reduce its carbon footprint. The AE operating model is organized around three pillars: energy excellence, clean energy and low carbon molecules.

About ACWA Power

ACWA Power (TADAWUL: 2082) is a developer, investor and operator of power generation, desalinated water and green hydrogen production plants. Registered and established in 2004 in Riyadh, Saudi Arabia; ACWA Power employs about 3,500 people and is currently present in 12 countries in the Middle East, Africa, Central Asia and Southeast Asia. ACWA Power's portfolio comprises 65 assets in operation, advanced development, or construction with an investment value of SAR 253.5 billion (USD 67.6), with capacity to generate 43.4 GW of power and produce 6.4 million m3/day of desalinated water per day, delivered on a bulk basis to address the needs of state utilities and industries on long term, off-taker contracts under utility services outsourcing and Public-Private-Partnership models.

ACWA Power's mission is to deliver electricity and desalinated water reliably and responsibly at a low cost, thereby contributing effectively to the sustainable, social and economic development of communities.

SOURCE Air Products; OQ; ACWA Power