Saudi Arabia has announced plans for a major green hydrogen facility in Yanbu, which is set to become one of the world’s largest. Spearheaded by ACWA Power in collaboration with Germany’s EnBW, the project will produce 4 lakh tonnes of green hydrogen annually, to be converted into green ammonia for global export.

With an electrolysis capacity of 4 gigawatts, the Yanbu Green Hydrogen Hub is poised to surpass the scale of the high-profile Neom hydrogen project. The initiative is designed not only to meet international demand for green fuels but also to establish Saudi Arabia as a leader in clean energy exports.

The project’s initial phase has kicked off with the award of a front-end engineering design (FEED) contract to a consortium comprising Spain’s Técnicas Reunidas and China’s Sinopec. This phase, lasting ten months, will lay the foundation for a multi-crore engineering, procurement, and construction (EPC) contract, expected to be worth several thousand crore in rupees. Técnicas Reunidas, notably, has already secured contracts worth over ₹20,000 crore (€2.2 billion) in Saudi Arabia across 2024 and 2025.

Supporting infrastructure is also integral to the project’s scope, including state-of-the-art water desalination systems to provide purified water essential for electrolysis, and a dedicated terminal to handle green ammonia exports. While the design phase does not include on-site renewable energy, the facility’s electricity needs are expected to be met through large-scale solar and wind farms.

This development aligns with Saudi Arabia’s broader Vision 2030 agenda, which focuses on economic diversification and climate responsibility. The Kingdom has pledged investments of up to ₹22 lakh crore ($270 billion) in its energy sector by 2030, aiming to supply 10% of global hydrogen demand. The Yanbu plant is expected to play a pivotal role in achieving that target, especially in decarbonising global industries and energy systems.

The green hydrogen race in the Gulf region continues to intensify. The United Arab Emirates has allocated over ₹90,000 crore (€10 billion) to its hydrogen strategy, and Morocco is developing a ₹2.7 lakh crore ($32 billion) plan to become a key supplier to Europe. Saudi Arabia’s Yanbu project now places it firmly at the forefront of this regional push for clean energy leadership.

Source:

https://www.chemanalyst.com/NewsAndDeals/NewsDetails/saudi-arabia-unveils-plans-for-world-leading-green-hydrogen-hub-in-yanbu-38295