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Saudi Arabia Doubles Down on the Hydrogen Race with the 4 GW Yanbu Project
- HX
- Jul 30
- 2 min read
Saudi Arabia is making a seismic move in the global energy transition by launching the Yanbu Green Hydrogen Hub, a project that promises to double the size of its own high-profile Neom hydrogen plant. Backed by ACWA Power and Germany’s EnBW, the new facility will produce a staggering 400,000 tons of green hydrogen annually, nearly double Neom’s capacity. That hydrogen will be converted into green ammonia and shipped around the world, signaling that the Kingdom isn’t just preparing for a post-oil era—it’s determined to lead it.
With 4 gigawatts of electrolysis capacity, Yanbu is set to become one of the largest green hydrogen production hubs on Earth. The project includes critical supporting infrastructure like desalination systems to purify water for electrolysis and a dedicated export terminal to handle outbound shipments. While the initial design doesn’t include renewable power generation, massive solar and wind projects are expected to be integrated later to ensure the hydrogen produced is 100% green. This scale of ambition highlights Saudi Arabia’s broader energy strategy, which involves investing up to $270 billion by 2030 and supplying 10% of the world’s hydrogen exports.
The front-end engineering design (FEED) contract has been awarded to Spain’s Técnicas Reunidas and China’s Sinopec, kicking off a 10-month planning phase. If successful, this project will redefine global supply chains, create new export revenue streams, and strengthen Saudi Arabia’s position as a key player in the hydrogen economy.
What’s the “so what”? The Yanbu project is a bold play to turn hydrogen into the next global commodity, positioning Saudi Arabia not just as a producer, but as a powerhouse in the emerging clean energy market. For industries looking to decarbonize—like shipping, steel, and power generation—this plant could be a game-changer. And for countries looking to import clean fuels at scale, it’s a glimpse into where the future supply will come from.
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