ACWA Power taps L&T for renewables and grid scope of green hydrogen hub in Yanbu

September 22, 2025, by Ajsa Habibic

Indian multinational conglomerate Larsen & Toubro (L&T) has signed a memorandum of understanding (MoU) with Saudi developer of green hydrogen plants ACWA Power for a green ammonia project in Yanbu, a port city on the Red Sea.

According to L&5, the agreement covers renewables and the grid scope of the ammonia project, a part of the Yanbu Green Hydrogen Hub, envisioned as a fully integrated facility with its own captive renewable electricity generation powered solely by solar and wind.

The renewables and grid scope of the project encompasses multiple facilities, including solar PV, wind, and battery energy storage system plants, as well as associated substations and transmission lines.

In addition to establishing a collaborative framework to design and achieve the performance targets, the MoU includes a commitment from L&T to enter into an engineering, procurement, and construction (EPC) contract upon acceptance of the final proposal.

T Madhava Das, Member of the Board and Senior Executive Vice President (Utilities) – Larsen & Toubro, said: “Saudi Arabia is a key leader in supply of clean energy and industrial decarbonisation. The kingdom has achieved remarkable progress in recent years due to the visionary programmes and initiatives. It is strategically located between east and west, produces renewable energy at competitive rates and develops ultra-mega projects with clear timelines.

“We are happy to contribute to its ambitions of promoting regional and international integration of clean energy, especially along the India – Middle East – Europe economic corridor. The MoU signed with our esteemed customer ACWA is a major milestone in our journey of trusted partnership.”

Marco Arcelli, Chief Executive Officer at ACWA Power, added: “The rapid pace of development on the Yanbu Green Hydrogen Project is a clear demonstration of our commitment to supporting the Kingdom’s leadership role in the global energy transition. By developing and exporting green ammonia, we aim to support international markets in their decarbonisation efforts and pave the way for a cleaner, more sustainable world.”

As part of its collaboration with international partners on creating a green hydrogen and renewable energy export value chain between Saudi Arabia and Europe, ACWA Power signed a joint development agreement with Energie Baden-Württemberg (EnBW) for the first phase of the Yanbu Green Hydrogen Hub earlier this year.

ACWA Power inks new deals for hydrogen and renewable power export to Europe

Collaboration

Planned to commence commercial operations by 2030, the hub will consist of desalination plants to feed its hydrogen electrolysis and ammonia conversion facilities, with a dedicated export terminal.

With 4 GW of electrolysis, the project is expected to produce 400,000 tons of renewable hydrogen per year, or more than 2.2 million tons of renewable ammonia – twice the size of the under-construction NEOM project, which is also located on the Red Sea coast.