Saudi Arabian Refineries Company (Sarco) has signed a non-binding memorandum of understanding (MoU) with China’s Ally Hydrogen Energy to develop clean energy projects in Jazan Industrial City. 

The plan includes a green ammonia production plant and a local hub for assembling hydrogen production and purification equipment. 

The partnership also aims to support technology localisation and supply chain development for Saudi Arabia’s emerging hydrogen sector. 

The MoU, effective from May 15, 2026, may be extended and is expected to positively impact Sarco’s financial results by Q3 2028.

The company noted that the agreement builds on earlier strategic partnerships, including an MoU signed with Go Energy in October 2025 and another signed by its wholly owned subsidiary, Clean Energy Company, with AGR Renewable Energy in February 2026.

According to Sarco, the latest agreement represents the selection of the final supplier for the proposed green ammonia plant.