Sinopec secures engineering contract for Saudi green hydrogen and ammonia project in Yanbu

Chinese energy company Sinopec, along with Spain’s Técnicas Reunidas, has secured a lucrative engineering contract for the green hydrogen and ammonia project in Saudi Arabia’s Yanbu Industrial City. The Kingdom of Saudi Arabia has for generations been at the forefront of the global energy sector; however, like Aladdin steering his magic carpet, the Kingdom is shifting its direction towards the construction of a huge hydrogen and ammonia project in the nation’s landmark Yanbu Industrial City.

Spanish engineering firm Técnicas Reunidas and Chinese energy utility Sinopec have been awarded a front-end engineering design contract

The Kingdom of Saudi Arabia has been an energy giant in the global arena and, through its vast amount of natural resources developed into a nation that looks like something out of a futuristic sci-fi novel. The megastructures and economic boom in the Kingdom brought standards of living up and positioned investors in the energy sector to make exceedingly large profits.

However, as the global energy industry has shifted towards the renewable energy sector, the oil-rich nations of the world need to foster a more balanced approach. Saudi Arabia is leading the region in that regard, following the announcement that Spanish engineering firm Técnicas Reunidas, in partnership with Chinese energy firm Sinopec, will design and construct what could be a landmark hydrogen and ammonia facility.

The contract was awarded to the consortium by ACWA Power. The facility will become the largest of its kind in the world and positions the Kingdom of Saudi Arabia as a global leader in the adoption and implementation of renewable energy projects.

Saudi Arabia has extensive experience in the efficient commissioning of energy projects that transform the global energy sector’s priorities, leading the charge for more renewable energy projects to become the norm.

Once construction has been completed, the value of the facility will skyrocket to astonishing levels

It has become evident that Saudi Arabia is aiming to lead the global clean energy export sector through innovative green hydrogen and ammonia projects. The facility will boast the production of 400,000 tons of green hydrogen annually.

Sinopec will handle the FEED (Front-end engineering and design) phase, which is set to last approximately 10 months. After that, the Técnicas Reunidas-Sinopec consortium is expected to present the Saudi government with an Engineering, Procurement, and Construction (EPC) proposal that could be worth billions of dollars.

The commissioning of the facility is set for 2030; once that takes place, it will position the Kingdom as a leader in the global hydrogen export sector. Other nations like India have also seen biomass-to-hydrogen projects being commissioned recently. The Kingdom’s Energy Minister has delivered a statement that notes his nation’s stance towards the renewable energy sector.

“We as a country, we are no longer called a leading oil-producing country … we would like to be called an energy producing country, all kinds of energy. You want green hydrogen you can have it, you want clean hydrogen, you can have it, you want clean electricity, you can have it.” – Saudi Arabia’s Enery Minister, Prince Abdulaziz bin Salman

Can the Kingdom of Saudi Arabia once again become a leader in the global energy sector through its innovative project

The innovative approach to the energy sector seems to run in the blood of the Saudi’s. The hydrogen sector has seen significant investments across the globe as the world aims to transition away from fossil fuels in order to meet the strict emission goals set during the Paris Agreement Summit. At the recent World Power-to-X summit in Morocco, the world’s leaders came together to fast-track the projects in the hydrogen sector. Whatever may be in store for the global energy sector, one can be assured that Saudi Arabia will play a critical role.