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
-
What Do Submarines Have to Do With Hydrogen?
Inside This Issue 🚢 Hyundai Pitches Hydrogen Transport Tied To Canada Submarine Bid 🧱 The LEGO Group Expands Its Portfolio Of Carbon Removal Solutions 🏆 SAF Pioneer LanzaJet Honored With RFA Indus...
-
This $4.1M Deal Could Change Carbon Capture's Playbook
Inside This Issue 🗜️ CarbonQuest Lands $4.1M Alberta Deal on Gas Compressors 🛡️ CADO, 123Carbon, and Assure SAF Registry Join Forces to Tackle SAF Integrity Gaps ✈️ ISCC, OMV, and Airbus Partner t...
-
Can Koloma Crack Iowa's Billion-Year-Old Secret?
Inside This Issue ⛏️ Iowa's Hydrogen Rush: Can Koloma Strike Gold Before Rules Kick In? ✈️ Bentley Commits to Use 100% Sustainable Aviation Fuel for Car Airfreight 🌬️ Minister Parrott Provides Upd...
Company Announcements
-
CHIFENG, China, Feb. 27, 2026 /PRNewswire/ -- Envision Energy launched the first global shipment of green ammonia from Chifeng, Inner Mongolia to LOTTE Fine Chemical, a premier chemical company in ...
-
SAF Pioneer LanzaJet Honored With RFA Industry Award
Pioneering sustainable aviation fuel producer LanzaJet received the Renewable Fuels Association’s 2026 Industry Award at the National Ethanol Conference in Orlando this week. Last year the company ...
-
Houston Hosts World Hydrogen North America 2026 Industry Gathering
Hydrogen is one of the energy sources that has evolved the most when it comes to how developers plan and execute projects. The main reason for this is the advanced technology that has penetrated th...
-
Trump EPA Eyes Reallocating Waived Biofuel Obligations To Refiners: Report
The question of whether to reallocate those exempted blending obligations to larger refiners is a point of contention between the agriculture and fuel industries The Trump administration has settl...