Saudi and Germany to develop Yanbu green hydrogen hub
Saudi Arabia developer-come-utility ACWA Power and Germany’s EnBW have signed a joint development agreement to develop the first phase of the Yanbu green hydrogen hub, in western Saudi Arabia.
The fully integrated renewable-powered facility is set for commercial operations from 2030. The aim is to produce green hydrogen and ammonia for global markets, with distribution via a dedicated export terminal.
Yanbu, with its large power and desalination plant, is a key location for energy production and distribution. Air Liquide and Air Products Qudra among the operators.
The project leverages Saudi Arabia’s potential to develop renewable energy “at competitive rates” and serve global industrial demand with clean energy solutions.
But establishing market frameworks isn’t easy, as illustrated by Air Products’ recent rethink with elements of its Neom project. A Yanbu–Neom interconnection project aims to connect large amounts of power to the megaproject.
In a sign of growing international collaboration, ACWA Power also signed a range of provisional commitments with independent technical consultant CESI (Italy), Prysmian (Italy), GE Vernova, Siemens Energy (Germany), Hitachi (France), Edison (Italy), TotalEnergies Renewables SAS (France), and Zhero Europe BV (Italy).
EnBW continues to forge close links in the Arabian Gulf across a range of sectors. Last December it signed a 15-year liquefied natural gas sales and purchase agreement with Adnoc.
Saudi is aiming to be a major exporter of hydrogen and ammonia, targeting 2.9 million tonnes per year by 2030, rising to 4 million tonnes by 2035. Under Vision 2030, the kingdom aims to generate half of its energy needs from renewables and alternative sources.
In other news today, Saudi industrial gas company AHG Group has unveiled plans to spend $20m on an industrial gas production facility in Damman in Saudi Arabia.