Saudi Arabia is ramping up its green hydrogen ambitions with a massive new facility planned in Yanbu. The Yanbu Green Hydrogen Hub, developed by ACWA Power in partnership with Germany’s EnBW, is expected to be nearly twice the size of the ongoing 2.2 gigawatt Neom project.
This new site will include 4 gigawatts (GW) of electrolysis capacity and could produce up to 400,000 tons of green hydrogen per year. That hydrogen will be processed into green ammonia for global export.
The front-end engineering design (FEED) contract has been awarded to a consortium of Spain’s Técnicas Reunidas and China’s Sinopec.
Commissioned by ACWA Power, the contract marks the start of detailed planning for what could become one of the world’s largest green hydrogen plants.
The FEED phase will last 10 months, after which the partners are expected to present an engineering, procurement, and construction (EPC) proposal worth several billion euros.
Facility to include desalination and export infrastructure
Alongside the massive electrolyzer setup, the project will include vital supporting infrastructure. Water desalination systems will ensure the plant has the purified water it needs for electrolysis.
A dedicated export terminal is also part of the scope, enabling efficient transport of green ammonia to international buyers. However, the design at this stage does not include the renewable power generation that will be essential to make the hydrogen fully green.
The electricity for the plant is expected to come from large solar and wind farms. While these assets are not part of the current contract, they will be crucial to ensure the hydrogen is produced without carbon emissions.
Técnicas Reunidas has been deepening its role in Saudi Arabia’s clean energy plans. The company has already secured more than €2.2 billion in energy contracts in the country over 2024 and 2025.
These include projects that combine hydrogen and carbon capture technologies. The firm is also leading work on one of Europe’s largest e-methanol plants in La Robla, Spain. There, it is integrating biogenic carbon capture to align with future decarbonization goals.
Gulf region races to lead hydrogen exports
Saudi Arabia’s push to scale up hydrogen production aligns with broader regional goals. The Kingdom aims to invest up to $270 billion in energy by 2030 and has set a target to supply 10% of the world’s hydrogen exports.
The new Yanbu hub will play a major role in achieving this, especially in providing green ammonia for decarbonizing industries and electricity generation abroad.
Hy24 CEO Pierre-Etienne Franc recently said, “The region is the next big place for hydrogen.” His view is echoed by the level of investment and infrastructure development happening across the Middle East and North Africa.
The United Arab Emirates has committed over €10 billion to its hydrogen strategy. Morocco is advancing a $32 billion initiative to become a key hydrogen supplier to Europe.
These efforts collectively represent 10% of the global electrolysis capacity currently under development. However, many of these projects are still waiting for final investment decisions, underlining both the ambition and the uncertainty in the market.
For Técnicas Reunidas and Sinopec, this FEED contract is just the first step. If they win the EPC bid, they will be responsible for delivering a project that meets Saudi Arabia’s industrial strategy, which now places hydrogen exports at its core.
As the global hydrogen sector grows, competition among suppliers is heating up. Saudi Arabia is betting that large-scale investments in production and infrastructure will secure its place as a global leader in green hydrogen and ammonia.
Whether these facilities can offer hydrogen at a globally competitive price remains to be seen. Electrolyzer technology is still maturing, and supply chains are under pressure.
The success of the Yanbu hub will depend not only on building a massive electrolyzer system but also on aligning with the Kingdom’s broader energy transition goals.
