ACWA Power has signed a memorandum of understanding (MoU) with Larsen & Toubro (L&T) to develop the renewables and grid components of the Yanbu green ammonia project in Saudi Arabia. The facility, located in Yanbu Industrial City on the Red Sea coast, will combine 5 GW of solar and wind power with a 400-km transmission line to operate up to 4.4 GW of electrolysers.

L&T will design, optimise and, once approved, execute engineering, procurement and construction (EPC) for multiple solar PV, wind and storage installations, along with associated substations and transmission infrastructure. This complements the work of other project partners, including Técnicas Reunidas and Sinopec Guangzhou Engineering, which were awarded the front-end engineering design (FEED) contracts. German utility EnBW also participates in the first phase under a joint development agreement with ACWA Power.

The integrated hub will produce 400,000 tonnes of green hydrogen annually, which will be converted into 2.5 million tonnes of green ammonia for export. The project is slated to commence commercial operations by 2030, reinforcing Saudi Arabia’s role in global decarbonisation efforts and the export of low-carbon fuels.