Saudi Arabia’s ACWA Power has taken a significant step forward in its green hydrogen ambitions by awarding a front-end engineering design (FEED) contract for a gigawatt-scale hydrogen facility in Yanbu, situated on the Red Sea coast. The FEED contract has been awarded to Spanish engineering firm Técnicas Reunidas, in partnership with Sinopec Guangzhou Engineering. The 10-month agreement is a convertible FEED contract, meaning it can transition into an EPC (engineering, procurement, and construction) contract upon successful completion. The scope covers the full hydrogen production system and ammonia synthesis process using multiple loops. The project will utilise up to 4.4 gigawatts (GW) of electrolysers to produce 400,000 tonnes of green hydrogen annually, which will then be converted into 2.5 million tonnes of green ammonia for export.

The plant will be located in Yanbu Industrial City and supported by a hybrid renewable energy setup comprising 5 GW each of solar and wind power. These energy sources will be linked via a 400-kilometre transmission line to supply consistent power to the hydrogen production facility. The 10-month FEED phase is expected to conclude with a transition to the engineering, procurement, and construction (EPC) stage, with commercial operations targeted for 2030.

This initiative marks Saudi Arabia’s second gigawatt-scale green hydrogen project after the NEOM project, which has 2.2 GW of electrolyser capacity and is slated to begin operations in 2026. The Yanbu Green Hydrogen Hub is being jointly developed by ACWA Power and German utility EnBW, in line with Saudi Arabia’s strategy to become a major exporter of clean fuels to Europe and beyond.

In July, ACWA Power signed multiple agreements with international partners to advance renewable and green hydrogen projects. This includes collaborations with global players such as EnBW, strengthening Saudi Arabia’s role in the global green hydrogen value chain.

Despite global setbacks and delays in large-scale hydrogen ventures—including reports that NEOM’s co-owner Air Products is facing challenges in securing full offtake agreements—the Yanbu project signals continued momentum in the Gulf’s hydrogen ambitions.

With its vast renewable resources and strategic location, Saudi Arabia is reinforcing its position as a potential leader in the green hydrogen economy.

Source:

https://renewablesnow.com/news/saudi-arabia-plans-another-gw-scale-green-hydrogen-project-1279762/

https://www.tecnicasreunidas.es/cnmv/tecnicas-reunidas-together-with-its-partner-sinopec-guangzhou-engineering-have-been-awarded-a-convertible-feed-contract-by-acwa-power-for-a-giga-scale-green-ammonia-facility-to-be-built-in-yanbu-sa/