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
-
Nebraska's 3-Plant Ethanol CCS Gamble Pays Off Big
Inside This Issue 🌽 Nebraska's 3-Plant Ethanol CCS Gamble Pays Off Big 🧊 New Evaporative Crystallizer Design Accelerates Direct-Air Carbon Capture ✈️ From SAF to Solar: DHL’s Bold Steps Toward Net...
-
SAF Output Doubled, So Why Is IATA Sounding Alarms?
Happy New Year from Decarbonfuse! As we wrap up 2025, we want to thank you for being part of the growing Decarbonfuse community. Your engagement and feedback have helped make this platform a trust...
-
$213 Per Tonne: Inside the Latest Multi-Pathway CDR Deal
Inside This Issue 💸 $213 Per Tonne: Inside the Latest Multi-Pathway CDR Deal 🏛️ Clean Energy Technologies Affiliate Vermont Renewable Gas Advances Regulatory Review 💧 Fusion Fuel’s BrightHy Soluti...
Company Announcements
-
CES 2026 - Doosan Presents Comprehensive Energy Solutions for the AI Era
Doosan Group, through its energy subsidiaries Doosan Enerbility and HyAxiom, will unveil a portfolio of next-generation energy solutions designed to meet the massive power demands of the AI era. Th...
-
From Thin Air to Fighter Jets: A New American Way to Make Carbon Fiber
Mars Materials, Inc. and North Carolina State University successfully validated a CO2-derived precursor for carbon fiber manufacturing. Mars Materials, Inc. PBC ("MM" or the "Company"), a public b...
-
Greentown Labs Announces Go Make 2026 With Shell and Technip Energies
Greentown Labs, the world's largest climatetech and energy incubator, announced Greentown Go Make 2026, an open-innovation program with Shell Catalysts & Technologies and Technip Energies focus...
-
SoCalGas Connects Its First Landfill-Based Renewable Natural Gas Project to Its Pipeline System
Southern California Gas Company (SoCalGas) is now accepting renewable natural gas (RNG) produced at the new WM Simi Valley RNG Facility into its pipeline system, marking the first time SoCalGas has...