Key Takeaways
- ACWA Power and Larsen & Toubro’s Renewables have signed an MoU for the Yanbu Green Ammonia Project in Saudi Arabia.
- The project will produce 400 kt/year of green hydrogen through renewable energy sources and is set to begin commercial operations in 2030.
- Engineering, procurement, and construction will follow upon final approval, with a FEED contract awarded to Tecnicas Reunidas and Sinopec Guangzhou Engineering.
Collaboration on Yanbu Green Ammonia Project
ACWA Power has partnered with Larsen & Toubro’s Renewables division by signing a Memorandum of Understanding (MoU) to enhance the Renewables & Grid aspects of the Yanbu Green Ammonia Project in Saudi Arabia. This initiative promises to harness solar photovoltaic (PV) and wind energy, combined with battery energy storage systems (BESS), to create a robust infrastructure for green hydrogen production.
The project will include substantial components such as substations and transmission lines to support a remarkable 4 GW electrolysis capacity, enabling the production of approximately 400 kilotons of green hydrogen annually. The hydrogen generated will be convertible into green ammonia, furthering the project’s sustainability goals. Additional features will consist of a seawater desalination plant and an export terminal, enhancing the project’s overall utility.
One of the key objectives of the MoU is to chart a path for optimizing the design and performance of the renewable energy facilities involved. Once the project receives final approval, Larsen & Toubro will commit to an engineering, procurement, and construction (EPC) contract. This defines a clear framework for project development and implementation, ensuring adherence to sustainability and efficiency standards.
Expected to come online by 2030, the Yanbu Green Hydrogen Hub intends to operate entirely on renewable energy sources. Earlier in July 2025, ACWA Power had advanced the project by awarding a Front-End Engineering Design (FEED) contract to a consortium comprising Tecnicas Reunidas and Sinopec Guangzhou Engineering, moving the initiative closer to realization.
Overall, the collaboration marks a significant step forward in Saudi Arabia’s renewable energy landscape, aiming to set new benchmarks in green hydrogen and ammonia production while contributing to global sustainability targets. The focus on renewable resources indicates a dedicated effort to transition towards a more sustainable energy future in the region.
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