Saudi Arabia has announced a massive new green hydrogen project that could soon become one of the largest in the world. The project, called the Yanbu Green Hydrogen Hub, will be developed in the coastal city of Yanbu. It will be almost twice the size of the Neom hydrogen plant already under construction.
Saudi company ACWA Power is developing the Yanbu plant with Germany’s EnBW. The plant will have a total electrolysis capacity of 4 gigawatts. That capacity can produce up to 400,000 tons of green hydrogen every year. The process will convert this hydrogen into green ammonia for shipment to international markets for power generation and industrial applications.
The first phase of the project is the Front-End Engineering Design, known as the FEED phase. A consortium including Spain’s Técnicas Reunidas and China’s Sinopec has received this phase. The FEED phase will last for 10 months. After that, the companies will submit a proposal for the full engineering, procurement, and construction phase, which will be worth several billion euros.
The Yanbu plant will include other important infrastructure. Engineers will install water desalination systems to provide the clean water needed for electrolysis. Developers will also build a dedicated export terminal so they can easily transport the green ammonia to buyers overseas.
Developers have not included renewable energy systems like solar and wind farms in the current contract. However, they will add these systems in the future. As a result, these renewable sources will ensure the hydrogen remains truly green and free from carbon emissions. Without this clean electricity, the hydrogen cannot be considered environmentally friendly.
Técnicas Reunidas has already played a role in Saudi Arabia’s clean energy plans. The company signed contracts worth more than 2.2 billion euros in the country during 2024 and 2025.
These contracts include projects that combine hydrogen with carbon capture technology. They also include new facilities in Europe like the large e-methanol plant in La Robla. That project includes a system to capture carbon from natural sources, which will help Europe meet its climate goals.
Saudi Arabia plans to invest up to 270 billion US dollars in energy by 2030. The country aims to supply at least 10 percent of the world’s hydrogen exports in the coming years. The Yanbu hydrogen hub will play a role in meeting that target. It will help provide clean energy to countries that want to reduce fossil fuel use and cut carbon emissions.
