Saudi Arabia is set to produce 400,000 tons of green hydrogen annually with a new 4 GW plant in Yanbu. This project, twice the size of Neom, holds strategic importance for the country’s export targets.
Saudi Arabia is preparing to construct a massive production facility in line with its goal of becoming a global leader in green hydrogen production. The “Yanbu Green Hydrogen Center,” to be built on the Red Sea coast in Yanbu, will be nearly double the size of the country’s existing 2.2 gigawatt facility as part of the Neom project.
The project, jointly managed by ACWA Power and German energy company EnBW, will have an annual production capacity of 400,000 tons of green hydrogen. The produced hydrogen will be converted into green ammonia and exported to international markets.
Engineering Process Initiated
A Front-End Engineering Design (FEED) contract for the facility’s engineering and design process has been awarded to a partnership between Tecnicas Reunidas from Spain and Sinopec from China. Following this phase, which is expected to last approximately 10 months, a multi-billion euro Engineering, Procurement, and Construction (EPC) proposal is anticipated. The Yanbu project is not limited to just the electrolysis plant; it will also integrate supporting infrastructure such as seawater desalination systems and an export terminal. This will ensure both the supply of pure water and the efficient delivery of green ammonia to international customers.
However, at this stage of the project, renewable energy generation is not directly included in the contract. The electricity required by the facility is planned to be supplied from solar and wind power plants.
Meanwhile, Tecnicas Reunidas has recently taken an active role in Saudi Arabia’s energy transition projects. The company signed over 2.2 billion euros in energy contracts in the country in 2024 and 2025, including projects that combine hydrogen production with carbon capture technologies.
Hydrogen Race Heats Up in the Gulf
Saudi Arabia’s significant investment is part of the region’s race to become a leader in hydrogen exports. The Riyadh government aims to invest $270 billion in the energy sector by 2030 and cover 10% of global hydrogen exports. The Yanbu facility will be central to this ambitious plan. Similarly, the United Arab Emirates has allocated 10 billion euros to its hydrogen strategy, while Morocco has launched a $32 billion initiative with the goal of becoming a hydrogen supplier to Europe. However, many of these investments are still awaiting final investment decisions.
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