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 is expected to be almost twice the size of the Neom hydrogen plant that is already under construction.
The Yanbu plant is being developed by Saudi company ACWA Power, in partnership with Germany’s EnBW. It will have a total electrolysis capacity of 4 gigawatts. That is enough to produce up to 400,000 tons of green hydrogen every year. This hydrogen will then be turned into green ammonia so it can be shipped to international markets for use in power generation and industrial applications.
The first phase of the project is called the Front-End Engineering Design or FEED phase. It has been awarded to a consortium that includes Spain’s Técnicas Reunidas and China’s Sinopec. The FEED phase will last for 10 months. After that, the companies are expected to submit a proposal for the full engineering, procurement, and construction (EPC) phase of the project, which will be worth several billion euros.
The Yanbu plant will include other important infrastructure. This will include water desalination systems, which are necessary to provide the clean water needed for electrolysis. A dedicated export terminal will also be built so the green ammonia can be easily transported to buyers overseas.
Even though renewable energy systems like solar and wind farms are not included in the current contract, they will be added in the future. These renewable sources will be needed to make sure that the hydrogen produced is truly green and free from carbon emissions. Without this clean electricity, the hydrogen cannot be considered environmentally friendly.
Técnicas Reunidas, one of the main engineering companies involved, has already been playing a role in Saudi Arabia’s clean energy plans. In 2024 and 2025 alone, the company has signed contracts worth more than 2.2 billion euros in the country.
These contracts include projects that combine hydrogen with carbon capture technology, as well as new facilities in Europe like the large e-methanol plant in La Robla, Spain. That project includes a system to capture carbon from natural sources, which will help Europe meet its climate goals.
Saudi Arabia’s new project is its plan to invest up to 270 billion US dollars in energy by 2030. The country wants to supply at least 10 percent of the world’s hydrogen exports in the coming years. The Yanbu hydrogen hub is expected to play a role in meeting that target. It will help provide clean energy to countries that want to reduce their use of fossil fuels and cut carbon emissions.
