The Yanbu Green Hydrogen to Ammonia Plant project in Saudi Arabia has made significant progress. Recently, a consortium formed by Spain's Tecnica United Engineering Company and China Petrochemical Group Guangzhou Engineering Co., Ltd. successfully won the front-end engineering design contract for the project, with a contract amount of up to 60 billion yuan. This mega project, led by Saudi Arabia International Power and Water Company, marks the substantive stage of Saudi Arabia's strategic layout in the field of green energy.

As an important component of Saudi Arabia's 2030 Vision, the project is located in Yanbu Industrial City, Mecca Province, Saudi Arabia. It plans to construct a 5-gigawatt wind solar complementary power generation system and a 4.4 gigawatt electrolytic water hydrogen production unit. It is expected to produce 400000 tons of green hydrogen annually and further convert it into 2.5 million tons of green ammonia products. The project also includes supporting seawater desalination facilities and a dedicated export terminal, planned to be completed and put into operation by 2030. According to data from the International Hydrogen Agency, once completed, this project will become one of the largest green hydrogen energy integrated facilities in the world.

It is worth noting that this is another major energy project won by Chinese companies in Saudi Arabia, following the 50 billion yuan green hydrogen project of NEOM New City in Saudi Arabia. An official from the Saudi Arabian Ministry of Energy stated that the Yanbu project will adopt the most advanced renewable energy hydrogen production technology, which can reduce about 5 million tons of carbon dioxide emissions annually, and has strategic significance for achieving Saudi Arabia's national emission reduction goals.

Eduardo San Miguel, CEO of Tecnica United Engineering Company in Spain, said in an interview, "This is an important breakthrough for our company in the Saudi Arabian market. Based on the experience accumulated in the NEOM project, we will work closely with Sinopec Guangzhou Engineering Co., Ltd. to ensure that the project is pushed forward to high standards. It is understood that the consortium will complete the front-end engineering design work within 10 months and then participate in the bidding for the general contracting of the project.

Han Weiguo, General Manager of Sinopec Guangzhou Engineering Co., Ltd., pointed out that "this project has pioneered cooperation between Chinese and European enterprises in the field of new energy in the Middle East. We will fully leverage our technological advantages in the hydrogen energy field and contribute Chinese solutions to Saudi Arabia's energy transformation." It is reported that Sinopec has achieved remarkable results in the layout of the entire hydrogen energy industry chain in recent years, and has mastered core technologies such as electrolytic water hydrogen production.

Saudi Arabia International Power and Water Company, as the project owner, is building a green hydrogen energy industry chain globally. The CEO of the company, Marco Arcelli, revealed that "we are building a hydrogen energy corridor connecting the Middle East, North Africa, and Europe, and the Yanbu project will be a key node." Data shows that Saudi Arabia International Power and Water Company has participated in investing in 47 energy projects in China and has received over $10 billion in financing support from Chinese financial institutions.

Industry experts analyze that this project has multiple strategic significance: firstly, it will enhance Saudi Arabia's voice in the global green hydrogen energy market; Secondly, it provides an important platform for Chinese enterprises to participate in international competition in new energy; Third, promote the upgrading of China Saudi Arabia production capacity cooperation under the the Belt and Road framework to high-tech fields. According to the International Renewable Energy Agency, the global green hydrogen energy market is expected to exceed $300 billion by 2030, with the Middle East region expected to hold over 30% of the market share.

It is worth noting that the wind solar complementary technology scheme adopted in this project has significant innovation. By optimizing the ratio of solar and wind power generation, the hydrogen production system can ensure stable operation for over 8000 hours per year. After the completion of the project, the products will be mainly exported to European countries such as Germany and the Netherlands for deep decarbonization in industries such as chemical and metallurgical.

Officials from the Saudi Arabian Ministry of Investment stated that the Yanbu project will drive the local job market, with an expected creation of 3000 jobs during the construction period and a need for 500 professional and technical personnel during the operation period. At the same time, the project will promote the construction of the local hydrogen energy industry chain in Saudi Arabia, including the development of supporting industries such as equipment manufacturing and technology research and development.

The Economic and Commercial Counsellor's Office of the Chinese Embassy in Saudi Arabia pointed out that this project is a concrete manifestation of the comprehensive strategic partnership between China and Saudi Arabia in the field of new energy. As Saudi Arabia accelerates its energy transition, Chinese companies will have more opportunities for cooperation in areas such as photovoltaics, wind power, and hydrogen energy. According to statistics, in 2023, Chinese companies' investment in Saudi Arabia's new energy sector will increase by 45% year-on-year, showing an accelerated development trend.

Industry insiders believe that the implementation of this project will have a demonstration effect, driving more international capital into the Middle East green energy market. At present, neighboring countries such as the United Arab Emirates and Oman are also planning similar projects, and in the future, the Middle East may form a trillion dollar scale green hydrogen energy industry cluster. For Chinese engineering enterprises, this is both an opportunity and a challenge, requiring continuous improvement of core technological competitiveness and international operational capabilities. (This article is from the official website of Jian Dao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website new energy column editor/Yang Beihua