Standard Chartered has provided the first-ever green guarantee for Larsen and Toubro’s (L&T) work on the NEOM Green Hydrogen Co (NGHC) megaproject in Saudi Arabia.
The guarantee covers L&T Saudi Arabia’s involvement in designing, supplying locally, constructing, and commissioning renewable and grid packages. International supplies will be handled by L&T’s subsidiary, LTIFZE.
The project aims to produce hydrogen from renewable sources, aligning with Saudi Arabia’s Vision 2030 goals to reduce carbon emissions. This initiative demonstrates Standard Chartered’s commitment to supporting sustainable projects and advancing green technologies in the region.
R Shankar Raman, CFO of L&T Group, highlighted the importance of partnerships in fostering sustainable development and expressed L&T’s focus on growing its green business in Saudi Arabia with the support of Standard Chartered.
The sustainable guarantee from Standard Chartered will provide L&T with the necessary financial support for developing wind and solar farms to facilitate green hydrogen generation while adhering to the bank’s environmental, social, and governance (ESG) standards.
The green hydrogen project will play a significant role in reducing carbon emissions, promoting sustainable development, and decreasing reliance on oil in Saudi Arabia. NGHC, a joint venture between ACWA Power, Air Products, and NEOM, is constructing the world’s largest green hydrogen plant at Oxagon in NEOM. L&T has reached critical milestones in power transmission and distribution work for this project. With the support of 23 banking and financial institutions, the project has achieved full financial backing, and construction is progressing. L&T will also establish renewable energy generation, storage, and grid infrastructure in collaboration with Air Products.
The awarded contracts to L&T have a total value of $2.779 billion and include the construction of a 2.2 GW photovoltaic solar plant, a 1.65 GW wind generation plant, and a 400 MWh battery energy storage system.
