ACWA Power has awarded the front-end engineering design (FEED) contract for its USD 8.5B Yanbu green hydrogen project to a consortium of Técnicas Reunidas and Sinopec Guangzhou Engineering. This early-stage award signals the kickoff of a landmark clean energy initiative on Saudi Arabia’s west coast, with substantial implications for suppliers, service providers, and local contractors.

The Yanbu project forms part of the Kingdom’s clean fuels export strategy, building on ACWA’s hydrogen expertise from NEOM and aiming to establish a second major production hub.

Key Scope Highlights

The FEED contract covers all technical, environmental, and integration studies for a highly ambitious infrastructure plan:

• 5 GW of wind power and 5 GW of solar power generation

• 400 km of transmission infrastructure to connect power sources to the hydrogen production site

• Up to 4.4 GW of electrolyser capacity

• Annual production of 400,000 tonnes of green hydrogen

• Conversion to 2.5 million tonnes of green ammonia, targeting global exports

This scale makes the project one of the largest green hydrogen efforts globally. Downstream suppliers should take note of the upcoming need for high-capacity electrolysers, renewable integration systems, ammonia handling equipment, and portside export facilities.

Project Timeline (Indicative)

• FEED Duration: 10 months

• EPC Proposal Phase: Following FEED, detailed EPC offers will be invited

• Planned Commissioning: 2030 (notable as an ambitious timeline given the scope)

What This Means for the Supply Chain

For subcontractors, vendors, service companies, manpower providers, and consultants,there are multiple entry points emerging:

• Engineering and environmental support services during FEED

• Major fabrication subcontracts for pressure vessels, modular skids, structural steel, and process equipment

• Service companies offering commissioning, inspection, maintenance planning, and site utilities packages will be needed throughout construction and startup

• Local manufacturing or assembly partnerships for renewable and hydrogen technologies

• Logistics, workforce mobilisation, site infrastructure and civil works support during the EPC phase

• Specialist equipment providers for hydrogen, ammonia, and renewable energy systems

• Ports and export infrastructure development, especially for ammonia shipping solutions

Técnicas Reunidas is known for early supplier engagement and long-lead item planning, while Sinopec brings deep links into Asia’s industrial supply chain. International players with Saudi partnerships and local content strategies (IKTVA compliance) should be positioning now for qualification and bidding rounds.

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