This initiative, developed by ACWA Power and Germany's EnBW, aims to produce 400,000 tons of green hydrogen annually for global export as ammonia.
Saudi Arabia is poised to cement its position as a global leader in green hydrogen production with the announcement of a monumental new facility in Yanbu. This ambitious undertaking, spearheaded by ACWA Power in collaboration with Germany’s EnBW, is projected to dwarf the ongoing Neom green hydrogen project.
The proposed Yanbu Green Hydrogen Hub will boast an impressive 4 gigawatts (GW) of electrolysis capacity, with an annual production target of 400,000 tons of green hydrogen. This hydrogen will then undergo conversion into green ammonia, earmarked for global export.
The initial phase of this colossal project has seen the front-end engineering design (FEED) contract awarded to a consortium comprising Spain’s Técnicas Reunidas and China’s Sinopec. This 10-month FEED phase will lay the groundwork for the subsequent engineering, procurement, and construction (EPC) proposal, which is anticipated to be worth several billion euros. The selection of Técnicas Reunidas further highlights its deepening involvement in Saudi Arabia’s clean energy transition, following over €2.2 billion in energy contracts secured in the Kingdom during 2024 and 2025.
Beyond the core electrolyzer infrastructure, the Yanbu project's scope encompasses crucial supporting facilities. These include advanced water desalination systems to ensure a steady supply of purified water essential for electrolysis, and a dedicated export terminal to facilitate the efficient shipment of green ammonia to international markets. While the current design phase does not directly incorporate renewable power generation assets, the plant's electricity is expected to be sourced from large-scale solar and wind farms.
This aggressive push into green hydrogen aligns seamlessly with Saudi Arabia’s broader economic diversification and energy transition goals. The Kingdom has earmarked an investment of up to $270 billion in its energy sector by 2030 and has set an ambitious target to supply 10% of the world’s hydrogen exports. The Yanbu Green Hydrogen Hub is poised to be a cornerstone in achieving this objective, particularly in providing green ammonia to aid in the decarbonization efforts of industries and electricity grids worldwide.
The enthusiasm for hydrogen in the Gulf region is palpable, with significant investments and infrastructure developments underway across the Middle East and North Africa. The United Arab Emirates has committed over €10 billion to its hydrogen strategy, while Morocco is advancing a $32 billion initiative to become a key hydrogen supplier to Europe.
