Saudi Arabia’s Acwa Power Co. plans to build the kingdom’s second multibillion-dollar green hydrogen plant, despite struggles to sell output from the first project.
Acwa Power has selected Tecnicas Reunidas SA and China’s Sinopec Guangzhou Engineering to carry out a front-end engineering design contract for the project, the Madrid-based firm said in a trading notice on Saturday.
>> In Other News: Carbon Ridge Deploys Shipping’s First Centrifugal Carbon Capture System in Partnership with Scorpio Tankers
The Yanbu plant will include 4 gigawatts of electrolysis capacity that will use wind and solar energy to split water molecules, generating 400,000 tons per year of green hydrogen, according to the statement.
Acwa Power did not immediately respond to a request to comment.
Saudi Arabia’s decision to launch another green hydrogen project signals its continued support for the nascent industry, despite enormous uncertainty over global demand for the product, which can be used as a fuel or fertilizer.
Acwa Power is one of the developers of a 4-gigawatt green hydrogen project within Neom, where partner Air Products & Chemicals Inc. has so far struggled to find buyers. The developer expects the $8.5 billion Neom plant to produce around 219,000 tons of green hydrogen, much less than the Yanbu project.
Tecnicas Reunidas and Sinopec will carry out the preliminary design work over the next 10 months. After that, they will seek a contract to build the plant, Tecnicas Reunidas said. Commercial operations are slated to start by 2030.
The project is intended to serve export markets. Acwa Power signed memorandums of understanding with Edison SpA, TotalEnergies Renewables SAS, Zhero Europe BV and EnBW Corp. to create a supply chain for green hydrogen from Saudi Arabia to Europe earlier this month.
Subscribe to the newsletter
Daily decarbonization data and news delivered to your inbox
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Latest issues
-
Mammoth DAC Plant in Iceland Hits 5x Carbon Removal Output
Inside This Issue 🌱 Climeworks Cuts Mammoth DAC Operating Costs by Over 50% 💰 ExxonMobil Wins Texas Approval for $5bn Carbon Capture Project 🌐 Open Coalition Approves Work Plan and Defines Secreta...
-
Origins Hub Will Store 1.5 Million Tonnes of CO2 in Alberta
Inside This Issue 🍁 Enhance Energy's Origins Hub Reshapes Alberta Carbon Storage 🤝 Carbon Unbound Merges East and West Coast Summits Into One Flagship North American CDR Event 🧭 Vortex Energy Enga...
-
Honeywell's Methanol-to-Jet Pathway Just Cleared Its Biggest Gate
Inside This Issue 🛫 Methanol-to-Jet Clears the ASTM Gate. What Changes Now? 🌿 InPlanet Selected as the Brazilian Supplier in Whirlpool Corporation's Durable Carbon Removal Portfolio 🧲 Climeworks A...
Company Announcements
-
FedEx: Expands Sustainable Aviation Fuel Agreements Across U.S. Air Network
MEMPHIS, Tenn., Sept. 15, 2026 - FedEx is scaling its sustainable aviation fuel (SAF) procurement through new agreements projected to secure more than 20 million gallons of neat SAF across five U.S...
-
Praj and Gevo Forge Landmark Alliance to Advance Bio-IBA in India
The agreement strengthens India's pioneering efforts to develop Bio-IBA as a renewable blending solution for decarbonizing one of the world's largest diesel markets. ENGLEWOOD, Colo and PUNE, Indi...
-
Novel approach addresses both methane and carbon dioxide removal and marks Google's largest carbon removal purchase to date, delivering 1M tonnes of impact by 2030 SAN FRANCISCO & SAO PAULO-- ...
-
AiP acquired after completing risk assessment of CO2 handling operations specific to low-pressure liquefied CO2 carriers and establishing a safety-focused design policy Utilizes the MILES-based st...