Saudi Arabia is building a second giga-scale green hydrogen platform alongside NEOM, with ACWA Power now joining forces with Larsen & Toubro (L&T) on the Yanbu Green Hydrogen Hub. The two companies signed a memorandum of understanding (MoU) on 22 September 2025 to collaborate on the renewables and grid scope of the project, setting up another multibillion-dollar EPC opportunity in the Kingdom.

Yanbu hydrogen hub

The Yanbu Green Hydrogen Hub is planned as one of the largest green hydrogen complexes in the world, located on Saudi Arabia’s Red Sea coast. The development will require several gigawatts of renewable generation capacity, split between solar PV and onshore wind, coupled with new high-voltage grid infrastructure to power electrolysis plants.

Under the MoU, L&T is positioned to take a central role in delivering this backbone infrastructure. Packages would likely include solar farms, wind parks, grid substations and transmission lines, as well as system integration for continuous supply to hydrogen production units.

Project partners

ACWA Power is leading the Yanbu project, building on its experience as the developer of the NEOM Green Hydrogen facility now under construction. L&T, one of India’s largest EPC contractors, is expanding rapidly in the Middle East clean energy market, with recent work on solar parks and transmission systems across the region. The Yanbu MoU deepens their partnership and gives L&T a front-row seat for a giga-scale contract award.

EPC opportunity

While no value has been disclosed, EPCIntel.com benchmarks suggest the renewables and grid scope could reach $3–5 billion, based on capital costs for 4–6 GW of solar and wind capacity and associated transmission infrastructure. For comparison, the NEOM hydrogen hub is underpinned by around 4 GW of renewables to support 2.2 GW of electrolysis.

With EPC awards expected later this decade, Yanbu is now firmly established alongside NEOM as a flagship project for Saudi Arabia’s Vision 2030 strategy. For EPC players and suppliers of solar modules, wind turbines, substations and high-voltage equipment, the MoU signals that a new pipeline of giga-scale opportunities is opening on the Red Sea coast.

The Middle East’s hydrogen race is accelerating. ACWA Power and L&T’s partnership ensures that when Yanbu moves from MoU to execution, the renewables and grid backbone will already have strong EPC contenders in place.