The Yanbu Green Hydrogen Project strengthens Saudi Arabia’s global energy-export role alongside the ongoing NEOM venture, underscoring the Kingdom’s decarbonisation and Vision 2030 ambitions

Saudi Arabia’s bold foray into the global hydrogen economy continues with ACWA Power having awarded a convertible front-end engineering design (FEED) contract for its Yanbu Green Hydrogen Project.

This transformative development positions the Kingdom even more firmly as a leader in decarbonisation and green-energy exports.

Located in Yanbu Industrial City on the Red Sea coast, the project will harness an ambitious 5 GW each of wind and solar power, paired with up to 4.4 GW in electrolysis capacity.

The resulting 400,000 tonnes of green hydrogen per year will be converted into about 2.5 million tonnes of green ammonia, and is designed for export to support hard-to-abate industries worldwide.

Set to become fully operational by 2030, this facility will significantly boost the Kingdom’s clean-energy credentials.

The FEED contract was awarded to Spain’s Tecnicas Reunidas and China’s Sinopec Guangzhou Engineering, marking a critical first step in designing the complex and proposing an engineering, procurement and construction (EPC) plan.

The FEED phase will span 10 months, marking a concrete progression from the project’s pre-FEED stage into more advanced development.

Reports suggest that the Yanbu Green Hydrogen Project is roughly double the size of the under-construction NEOM Green Hydrogen Complex on the Red Sea.

ACWA Power has also signed agreements with European partners, including German utility EnBW, to develop a ‘green hydrogen and renewable energy export’ corridor stretching from Saudi Arabia to Europe.

Meanwhile, the NEOM Green Hydrogen Project, jointly developed by ACWA Power, Air Products, and NEOM, has reached over 80 per cent construction completion across its green hydrogen facility, wind and solar farms, and dedicated transmission grid.

With production slated to begin in 2027, the project aims to generate around 1.2 million tonnes of renewable ammonia per year, powered by a combined 2.2 GW solar and 1.6 GW wind generation capacity.

Beyond its output, NEOM represents a broader decarbonisation and economic-diversification vision integral to Saudi Vision 2030.

It serves as a model city of the future; an industrial, logistic and energy hub built entirely on renewables, with ambitious goals for automation, AI, and sustainable urban living.

UNWAVERING GLOBAL AMBITIONS

Despite global uncertainties affecting green hydrogen investments, Saudi Arabia’s strategic investment in both NEOM and Yanbu demonstrates a sharp, state-driven push to pioneer large-scale green ammonia exports.

While many green hydrogen projects elsewhere face challenges, ACWA Power is proceeding with its second multi-billion-dollar hydrogen plant.

The Yanbu project’s integration with export corridors to Europe also highlights the Kingdom’s desire to anchor itself as an essential supplier in a decarbonising global energy system.

Saudi Arabia’s strategy to lead the global hydrogen economy is built on three key pillars: Scale, integration, and export leadership.

By simultaneously developing multiple giga-projects such as NEOM and Yanbu, the Kingdom is demonstrating an ability to scale green hydrogen production faster than most international competitors.

These facilities are being designed as fully integrated hubs, ensuring reliability and cost efficiency across the supply chain. They combine renewable power generation, desalination, electrolysis, ammonia synthesis, and dedicated export terminals.

The Kingdom also aims to capture first-mover advantage by embedding itself within international hydrogen trade routes.

Its agreements with European utilities, technology providers, and shipping companies position Saudi Arabia as a cornerstone of the future global hydrogen economy.

Under the Saudi Green Initiative and Vision 2030, the Kingdom is targeting 4 million tonnes per year of low-carbon hydrogen production by 2030, setting the stage for the country to become the world’s largest and most competitive green hydrogen exporter.