L&T, ACWA Power sign agreement to develop green hydrogen hub in Saudi Arabia

The renewables division of Larsen & Toubro (RENU) has inked a Memorandum of Understanding (MoU) with Middle-East clean energy major ACWA Power to collaborate on the Yanbu Green Hydrogen Hub in Saudi Arabia. The project, designed as a fully integrated renewable energy facility, will generate power from solar and wind resources to produce green ammonia for global markets.

As part of the agreement, the scope includes the installation of solar photovoltaic (PV) panels, wind turbines and battery energy storage systems, along with substations and transmission infrastructure. The partnership will work towards finalising design configurations that meet stringent safety, sustainability and performance standards.

Once approved, Larsen & Toubro is expected to execute the Engineering, Procurement, and Construction (EPC) contract.

“Saudi Arabia is a key leader in supply of clean energy and industrial decarbonization. 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,” said T Madhava Das, Senior-VP (Utilities) – Larsen & Toubro.

Elaborating this vision, he described Saudi Arabia as a global leader in clean energy and industrial decarbonisation. He emphasised the Kingdom’s competitive renewable energy rates, strategic location, and commitment to mega projects with defined timelines. He also underlined the project’s importance for regional integration, particularly along the India–Middle East–Europe economic corridor.

The MoU represents a milestone in the long-standing collaboration between L&T and ACWA Power, while reinforcing their shared commitment to advancing large-scale renewable projects.

L&T, a USD 30 billion Indian multinational, continues to expand its global footprint across EPC, manufacturing, and services. The agreement underscores the company’s growing role in supporting international clean energy ambitions.

In June 2024, L&T establishment its wholly owned new subsidiary—Panipat Green Hydrogen Pvt Ltd. –to spearhead green hydrogen projects specifically and related business ventures.