Sinopec will deliver engineering services for ACWA Power’s Yanbu project, creating the world’s largest green hydrogen-ammonia production facility.
China Petroleum & Chemical Corporation, widely known as Sinopec, has entered into a significant agreement to supply engineering services to Saudi Arabia’s ACWA Power in Yanbu, according to multiple media reports. This collaboration is central to the development of what is projected to become the world’s largest integrated green hydrogen and green ammonia facility. The project aims to accelerate Saudi Arabia’s energy transition efforts by using renewable sources such as solar and wind power to produce environmentally sustainable fuels on a massive scale.
As per the agreement, Sinopec’s subsidiary, Sinopec Engineering Group, will play a crucial role in handling the front-end engineering design (FEED) along with taking responsibility for the convertible engineering, procurement, and construction (EPC) work associated with the project. This scope of responsibility highlights the strategic role Sinopec is expected to assume in ensuring the project’s timely execution and technical efficiency.
According to details cited in media reports, the Yanbu-based facility is designed to produce around 400,000 metric tons of green hydrogen annually and nearly 2.8 million tons of green ammonia each year. Both products are regarded as cornerstone solutions for decarbonizing global energy systems, particularly in industrial and transport applications. The combination of green hydrogen and ammonia at such scale is expected to position Saudi Arabia as a major international supplier of clean fuels while furthering the objectives of its Vision 2030 strategy.
While no specific financial details of the partnership have been disclosed, Sinopec mentioned that the commercial operations of the facility are currently targeted for 2030. This timeline aligns with global forecasts for an acceleration of hydrogen demand and international decarbonization goals. Industry analysts also believe this project may set new standards for megascale renewable energy ventures in the Middle East.
Sinopec’s involvement in Yanbu is not new. The company already maintains a long-term presence in Saudi Arabia through its joint venture with Aramco in the Yanbu Aramco Sinopec Refining Company (YASREF). That refinery has steadily evolved into a pivotal petrochemical hub and is currently undergoing expansion to increase its processing and downstream capacity. Sinopec’s established reputation and operational success in Saudi Arabia have helped pave the way for deeper collaboration on upcoming renewable projects.
In recent years, Sinopec has expanded its footprint in the kingdom by undertaking large-scale infrastructure initiatives. These include a $1.1 billion natural gas pipeline contract as well as other engineering responsibilities linked to Saudi Arabia’s rising green hydrogen and ammonia projects. Through these ventures, Sinopec has positioned itself not only as an oil and gas partner but also as a vital contributor to the region’s clean energy transformation.
This new partnership with ACWA Power underlines both companies’ commitment to building a sustainable energy ecosystem, while reinforcing Saudi Arabia’s ambition of becoming a global leader in green energy exports.
