Saudi Arabia’s decision to award Técnicas Reunidas, in partnership with Sinopec, the front-end engineering design (FEED) contract for what is set to become one of the world’s largest green hydrogen plants marks a significant acceleration in the region’s bid to dominate future hydrogen exports. Located in Yanbu and backed by ACWA Power, the facility aims to produce 400,000 tons of hydrogen annually—destined for conversion into green ammonia for export markets.
At the core of the project lies a 4-gigawatt electrolysis system, complemented by critical ancillary infrastructure such as desalination facilities and a dedicated port terminal to manage green ammonia logistics. Notably, the power supply—expected to rely on large-scale solar and wind farms—remains outside the current scope, yet it is a non-negotiable component if the plant is to achieve full carbon neutrality.
Técnicas Reunidas’ involvement is strategically significant beyond a single contract. The company has signaled an aggressive pivot toward clean-energy engineering, leveraging expertise gained from recent projects, including one of Europe’s largest e-methanol plants in La Robla, Spain, where it oversees biogenic carbon capture systems. Over 2024–2025, it has already secured more than €2.2 billion in contracts within Saudi Arabia, primarily for combined-cycle plants designed for hydrogen and carbon capture integration—illustrating the company’s deeper alignment with the Kingdom’s decarbonization agenda.
The Middle East’s hydrogen ambitions are not isolated to Saudi Arabia. Hy24 CEO Pierre-Etienne Franc describes the region as “the next big place for hydrogen,” a claim supported by scale and capital commitments. Saudi Arabia alone plans up to $270 billion in energy investments by 2030, aiming to capture 10% of the global hydrogen export market. Neighboring states are moving in parallel: the UAE has launched a strategy backed by more than €10 billion in initial funding, while Morocco’s $32 billion program seeks to position it as a primary supplier to Europe. Collectively, these countries already represent 10% of global electrolysis capacity under development—though much of it remains at the final investment decision stage, highlighting both momentum and uncertainty in execution timelines.
For Técnicas Reunidas and Sinopec, the FEED phase represents an entry point into a competitive EPC race that will likely span multiple billion euros. Success will depend not only on technical execution but also on the ability to align with Saudi Arabia’s broader industrial strategy, which integrates hydrogen production into its export-driven economic model. Whether these mega-investments will translate into cost-competitive green hydrogen remains a critical question, particularly as global electrolyzer markets face scaling challenges, supply-chain constraints, and an urgent need for technology standardization.
