ACWA Power and L&T Partner on Yanbu Green Hydrogen Project
Larsen & Toubro (L&T), one of India’s largest multinational engineering, procurement, and construction conglomerates, has announced a significant step in advancing the Kingdom of Saudi Arabia’s clean energy ambitions. The Renewables (RENU) vertical of L&T has signed a Memorandum of Understanding (MOU) with ACWA Power, the Riyadh-based global leader in power generation, water desalination, and green hydrogen. The agreement covers the Renewables & Grid scope of the landmark Yanbu Green Ammonia Project, a pioneering initiative in the Kingdom that is poised to become a cornerstone of the global clean energy transition.
The Yanbu Green Hydrogen Hub is designed as a fully integrated facility with its own captive renewable energy generation powered exclusively by solar and wind. The Renewables & Grid scope includes multiple facilities such as utility-scale solar photovoltaic (PV) plants, wind farms, and advanced battery energy storage systems (BESS). These will be supported by associated substations and high-capacity transmission infrastructure to ensure grid reliability, efficiency, and resilience.
A Visionary Project for Global Energy Transition
The Yanbu Green Hydrogen Hub is part of Saudi Arabia’s ambitious plan to position itself as a global hub for green hydrogen and ammonia production. Located strategically on the Red Sea coast, Yanbu offers natural advantages such as abundant solar and wind resources, industrial infrastructure, and access to global shipping routes. The project is expected to become a model for large-scale renewable hydrogen production, supporting both domestic energy security and international export markets.
By relying solely on renewable energy inputs, the facility will produce green hydrogen that can be converted into green ammonia, a versatile carrier for global export. This initiative directly contributes to decarbonisation targets across multiple industries, particularly in hard-to-abate sectors such as steelmaking, fertilizers, and heavy transport.
Scope of the MOU and L&T’s Role
Under the terms of the MOU, L&T and ACWA Power will collaborate to design, configure, and optimise the renewables and grid infrastructure for the Yanbu Green Hydrogen Project. The framework sets the stage for L&T to leverage its engineering, procurement, and construction (EPC) expertise to deliver a fully integrated solution that aligns with the project’s stringent performance and sustainability requirements.
Once the final technical and commercial proposal is accepted, the agreement commits L&T to enter into an EPC contract for the execution of the renewables and grid facilities. This includes responsibility for:
- Solar PV Installations: Large-scale solar farms designed with advanced module technologies for maximum efficiency and output.
- Wind Farms: Onshore wind projects with turbines optimised for local wind conditions.
- Battery Energy Storage Systems (BESS): Cutting-edge storage solutions to stabilise supply, manage intermittency, and ensure 24/7 renewable power availability.
- Substations and Transmission Lines: High-capacity grid infrastructure to connect the renewable generation and storage assets with the hydrogen production plant.
This approach ensures seamless integration of diverse renewable technologies into a cohesive system capable of powering the hydrogen hub continuously and reliably.
Leadership Commentary
Marco Arcelli, Chief Executive Officer of ACWA Power, emphasised the global significance of the project in his remarks:
“The rapid pace of development on the Yanbu Green Hydrogen Project is a clear demonstration of our commitment to supporting the Kingdom’s leadership role in the global energy transition. By developing and exporting green ammonia, we aim to support international markets in their decarbonisation efforts and pave the way for a cleaner, more sustainable world.”
Arcelli highlighted ACWA Power’s dedication to accelerating the world’s shift to renewable energy through transformative projects. The Yanbu hub, in his words, exemplifies Saudi Arabia’s vision of becoming a key enabler of clean energy adoption on a global scale.
Adding to this, T. Madhava Das, Member of the Board and Senior Executive Vice President (Utilities) at L&T, underlined both the strategic importance of the partnership and the broader impact of the project:
“Saudi Arabia is a key leader in supply of clean energy and industrial decarbonisation. The Kingdom has achieved remarkable progress in recent years due to the visionary programmes and initiatives. It is strategically located between east and west, produces renewable energy at competitive rates and develops ultra-mega projects with clear timelines. We are happy to contribute to its ambitions of promoting regional and international integration of clean energy, especially along the India–Middle East–Europe economic corridor. The MOU signed with our esteemed customer ACWA is a major milestone in our journey of trusted partnership.”
L&T’s Proven Capabilities in Renewables and EPC
L&T’s Renewables business has built a strong track record across India, the Middle East, and international markets by delivering complex, large-scale renewable energy and transmission projects on time and to the highest quality standards. Its expertise spans solar PV, wind power, hybrid renewable systems, grid infrastructure, and battery storage.
In recent years, L&T has been instrumental in executing multiple giga-scale renewable energy projects across India and overseas, solidifying its position as a trusted EPC partner for global developers. With its advanced engineering capabilities, project management expertise, and commitment to safety and sustainability, L&T brings unmatched value to mega projects such as Yanbu.
The partnership with ACWA Power reflects L&T’s ability to collaborate with global leaders and contribute to projects that drive systemic decarbonisation. Importantly, this MOU reinforces L&T’s strategy of expanding its renewables footprint beyond India, aligning with the company’s broader commitment to supporting the world’s clean energy transition.
Strategic Importance for Saudi Arabia and Global Energy Markets
Saudi Arabia, under its Vision 2030 framework, has identified green hydrogen and ammonia as critical pillars for future economic diversification and energy security. The Kingdom has already emerged as one of the most competitive producers of renewable energy, thanks to its abundant natural resources, favourable climate, and scale of investment.
Projects such as the Yanbu Green Hydrogen Hub not only strengthen the Kingdom’s position in global energy markets but also accelerate the availability of clean fuels for international partners. By exporting green ammonia to Europe, Asia, and other regions, Saudi Arabia can help countries meet their decarbonisation targets while creating a new export economy for itself.
The project also ties directly into the India–Middle East–Europe Economic Corridor (IMEC) initiative, where clean energy integration and technology partnerships are expected to play a defining role. With L&T’s strong presence in both India and the Middle East, the Yanbu project illustrates the potential for deeper cooperation between regions in building sustainable infrastructure for the future.
Raising the Bar on Safety, Quality, and Sustainability
One of the cornerstones of the L&T–ACWA Power collaboration is a shared focus on setting new benchmarks in project delivery. Both companies have emphasised the importance of safety, quality, and sustainability in the execution of the Yanbu Renewables & Grid scope.
L&T’s approach to EPC will include:
- Safety First: Implementation of globally recognised safety standards across all phases of construction and operation.
- Sustainability Integration: Minimising environmental impact during construction, adopting circular economy principles, and ensuring biodiversity preservation.
- Performance Excellence: Designing systems that maximise efficiency, optimise costs, and ensure long-term reliability.
By embedding these principles, the Yanbu Green Hydrogen Hub is expected to serve as a benchmark for future renewable hydrogen and ammonia projects worldwide.
