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Saudi Arabia’s Acwa Power has signed a memorandum of understanding (MoU) with the renewables division of Indian industrial contracting conglomerate Larsen & Toubro (L&T) for the renewables and grid scope of the Yanbu green ammonia project in the kingdom.

Under the MoU, L&T will work with project developer Acwa Power to finalise the design and configuration of the renewables package. Once approved, L&T is expected to move into a full engineering, procurement and construction (EPC) contract.

Located in Yanbu Industrial City, the Yanbu Green Hydrogen Hub aims to harness 5GW each of wind and solar power, along with a 400-kilometre transmission line and up to 4.4GW of electrolysers.

The green hydrogen produced will be converted into 2.5 million tonnes of green ammonia for export to international markets.

The package includes solar photovoltaic, wind and battery energy storage systems with associated substations and transmission lines.

In July, Acwa Power awarded the front-end engineering and design (feed) contract to a consortium of Spain’s Tecnicas Reunidas and China’s Sinopec Guangzhou Engineering.

Tecnicas Reunidas has been involved in the project since its pre-feed stages, while Sinopec Guangzhou Engineering’s participation continues from a memorandum of understanding signed with Acwa Power in 2024.

Acwa Power previously signed a joint development agreement with Germany’s Energie Baden-Wurttemberg (EnBW) for the Yanbu green ammonia project.

The project is scheduled to start commercial operations in 2030.