Saudi energy group ACWA Power has signed a memorandum of understanding with the Renewables (RENU) division of India’s Larsen & Toubro to develop the renewable infrastructure of the Yanbu green hydrogen project. The integrated facility is designed to produce 400,000 tonnes of hydrogen annually using 4 GW of electrolysis capacity, fully powered by renewable energy.
The agreement states that Larsen & Toubro will undertake engineering, procurement and construction (EPC) work following final project approval. The two companies will work together to optimise the design and performance of the electrical network, which will include solar photovoltaic, wind and battery energy storage system (BESS) capacity, as well as substations and transmission lines.
A fully autonomous site for production and export
Located on Saudi Arabia’s western coast, the complex will also include a seawater desalination plant and a maritime export terminal. The energy generated from the renewable installations will exclusively power the electrolysis process, with no connection to the national grid.
The project fits into the country’s low-emissions industrial development plans. The hydrogen produced can be locally converted into green ammonia, a more stable vector for international maritime transport.
Industry partners already mobilised
In July, ACWA Power had awarded a front-end engineering design (FEED) contract to the Spanish-Chinese consortium formed by Técnicas Reunidas and Sinopec Guangzhou Engineering. This phase was aimed at securing engineering for the hydrogen and ammonia production facilities.
The Yanbu project is scheduled to reach commercial operation by 2030. It is part of a broader portfolio of green hydrogen initiatives that ACWA Power is developing in the Kingdom, in partnership with international industrial players.
