ACWA Power announced that Spanish engineering firm Tecnicas Reunidas and Sinopec Guangzhou Engineering, one of China's leading energy and chemical engineering companies have been awarded a convertible front-end engineering design (FEED) contract for the Yanbu Green Hydrogen Project in Saudi Arabia.

Under the terms of the agreement, the consortium will provide FEED for a facility with a production capacity of 400,000 tonnes of green hydrogen annually, and its conversion into green ammonia through several ammonia synthesis loops.

The FEED contract will span 10 months, after which the joint venture will present an engineering, procurement and construction (EPC) proposal for the execution of this multibillion facility, which shall be ready for commercial operations by 2030. Tecnicas Reunidas has been involved in the project since pre-FEED stages and Sinopec Guangzhou Engineering gives continuity with this award to the MoU signed with ACWA Power in 2024.

With commissioning targeted for 2030, the Yanbu Green Hydrogen project will contribute to the decarbonisation of hard-to-abate sectors through its base in Yanbu Industrial City. It aims to utilise 5 GW each of wind and solar power, coupled with a 400 km transmission line and up to 4.4 GW of electrolysers to annually produce 400,000 tonnes of green hydrogen, which will be converted to 2.5 million tonnes of green ammonia to facilitate its export to international markets.

Commenting on the award, Marco Arcelli, Chief Executive Officer at ACWA Power, said: “The rapid pace of development on the Yanbu Green Hydrogen Project is a clear demonstration of our commitment to supporting the Kingdom’s long-term energy security while also taking a leadership role in the global transition to sustainable energy. By developing and exporting green ammonia, we aim to support international markets in their decarbonisation efforts and pave the way for a cleaner, more sustainable world.”

Eduardo San Miguel, CEO at Tecnicas Reunidas, said: "This new contract represents a highly significant milestone for Técnicas Reunidas. It is a strategic international energy project that strengthens the cooperation between Saudi Arabia and Europe, in collaboration with our client ACWA Power. The project reaffirms our strong commitment to the Saudi market and marks a major step forward in our strategy in energy transition and decarbonisation and it also reinforces our successful partnership with Sinopec. We are deeply honoured to have been selected by ACWA Power to undertake this landmark project."

Han Weiguo, President at Sinopec Guangzhou Engineering, said: “This project represents a significant leap forward in the global green energy sector and a pivotal milestone in green energy advancement. It will drive global energy transformation and lead the industry toward a sustainable green future. SINOPEC Guangzhou Engineering will collaborate closely with the client ACWA Power and our partner TR to facilitate the implementation of this mega project and make a significant contribution to global green energy development.”

The project leverages Saudi Arabia’s potential to develop and serve global industrial demand with clean energy solutions. It also underscores ACWA Power's commitment to developing innovative and sustainable energy solutions that contribute to the Kingdom's clean energy objectives and ensure a sustainable future for millions across the globe.