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
-
Why Airlines Might Spark a $100B Market
Inside this Issue ✈️ CORSIA Transforms Aviation Compliance Into Market Gold Rush 📉 IEA Cuts 2030 Low-emissions Hydrogen Production Outlook by Nearly a Quarter 🎤 GenH2 Executive Chairman Josh McMor...
-
Who’s Driving $110B Into Hydrogen Now?
Inside This Issue 🌍 Global Hydrogen Industry Surpasses USD 110 Billion In Committed Investment As 500+ Projects Worldwide Reach Maturity ♻️ Cielo Advances Waste-to-Fuel Innovation with Project Nex...
-
ExxonMobil + CF Capture 2M Tons in America’s Largest CCS Launch
Inside This Issue 🏭 CF Industries Flips Switch on Massive CCS Hub That Changes Everything 🧴 Scientists Transform Plastic Waste Into Efficient CO2 Capture Materials ⚡ SHS Group and Verso Energy Sig...
Company Announcements
-
Live Session will Explore Liquid Hydrogen Infrastructure for Aviation TITUSVILLE, FL, UNITED STATES, September 12, 2025 /-- GenH2 Corp., a Path2 Hydrogen Company, a leader in liquid hydrogen infra...
-
Achieved target ethanol purity of over 99.5vol% at a pilot plant in the Nagasaki District Research & Innovation Center Reduced energy consumption significantly and achieved compact equipme...
-
Hanwha Power Systems has received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for the ammonia fuel gas turbine conversion design aimed at 174K LNG carriers at Gastech 202...
-
Alléo Energy Unveils Carbon-Negative Green Hydrogen System
Alléo cellulosic waste to hydrogen conversion facility BAY MINETTE, Ala.-- Alléo Energy, a pioneer in sustainable energy solutions, today announced a cellulose-to-hydrogen process yielding over on...