Sinopec to give engineering services to ACWA Power green hydrogen project

China’s energy giant Sinopec has signed an agreement with Saudi Arabia’s ACWA Power to deliver engineering services for what is expected to become the world’s largest integrated green hydrogen and green ammonia project.

The mega-facility, to be built in Yanbu city on Saudi Arabia’s Red Sea coast, will run entirely on wind and solar power. Once operational, it is designed to produce around 400,000 metric tons of green hydrogen and 2.8 million tons of green ammonia annually.

While financial details of the deal remain undisclosed, Sinopec confirmed that its engineering arm, Sinopec Engineering Group, will take charge of the project’s front-end engineering design (FEED) along with the convertible engineering, procurement, and construction (EPC) phases. As per reports, the commercial production is targeted for 2030.

The collaboration underscores the deepening energy ties between China and Saudi Arabia, as both countries intensify efforts to expand renewable energy capacity and push forward ambitious carbon reduction goals.

Last year, Sinopec had signed a memorandum of cooperation with ACWA Power of Saudi Arabia in Shanghai. The memorandum is mainly related to the joint exploration, development, construction, management and operation of green hydrogen energy and green ammonia synthesis projects, which will be built in many countries and regions around the world.

Sinopec already has a stronghold in the green energy sector in Saudi Arabia and West Asia. It has a joint venture with energy giant Aramco in the Yanbu Aramco Sinopec Refining Company that has transformed into a petrochemical hub for the region. The Chinese firm is also building a gas pipeline in the kingdom in a contract of $1.1 billion besides green hydrogen and green ammonia projects.