Larsen & Toubro (L&T), India’s leading multinational conglomerate, has entered into a memorandum of understanding (MoU) with ACWA Power to collaborate on the Yanbu Green Hydrogen Hub in Saudi Arabia. Envisioned as one of the most ambitious clean energy projects in the region, the facility will be fully integrated to generate power from solar and wind sources, and will serve as a cornerstone of Saudi Arabia’s efforts to transition towards sustainable energy and expand its role in the global hydrogen economy.

The scope of the collaboration is extensive, encompassing the installation of solar photovoltaic (PV) systems, wind farms, battery energy storage systems (BESS), substations, and transmission infrastructure. This integrated approach is designed to create a resilient and efficient renewable energy backbone capable of supplying consistent green power to produce green hydrogen and its derivatives.

In the initial phase, both companies will focus on finalising the project’s design, configurations, and performance targets. Once approvals are secured, Larsen & Toubro is expected to take on a full Engineering, Procurement, and Construction (EPC) contract for the development. The project is positioned not only as a major milestone for renewable energy in the Middle East, but also as a benchmark for the integration of multiple clean energy technologies on a commercial scale.

Marco Arcelli, Chief Executive Officer of ACWA Power, emphasised the strategic importance of the Yanbu Green Hydrogen Hub, noting its contribution to Saudi Arabia’s energy transition and its potential to boost green ammonia exports to international markets. Green ammonia, derived from hydrogen, is gaining traction as a key clean fuel for shipping and industry. Arcelli highlighted that projects of this scale are essential for meeting global decarbonisation targets and positioning Saudi Arabia as a leading exporter of clean fuels.

T. Madhava Das, Senior Executive Vice-President of Larsen & Toubro, echoed this sentiment, pointing out that Saudi Arabia occupies a pivotal place in the clean energy landscape. He underlined L&T’s strong engineering capabilities, commitment to sustainability, and proven track record in executing large-scale EPC projects across global markets. According to him, the Yanbu Green Hydrogen Hub represents an opportunity to strengthen regional clean energy integration, especially through initiatives like the India-Middle East-Europe corridor, which aims to build a secure and interconnected clean energy network.

The MoU represents more than just a bilateral agreement—it signals a significant advancement in global renewable energy collaboration. With defined timelines, strict performance targets, and ambitious production goals, the Yanbu project reflects the determination of both partners to pioneer large-scale hydrogen production.

Source: 

https://www.businessworld.in/article/lt-signs-mou-with-acwa-power-for-saudi-green-hydrogen-project-572571