In a bold stride toward global energy transition, Larsen & Toubro Ltd (L&T) has signed a Memorandum of Understanding (MoU) with Saudi Arabia’s ACWA Power for the development of the Yanbu Green Hydrogen Hub. The agreement outlines L&T’s commitment to enter into a full-fledged Engineering, Procurement, and Construction (EPC) contract once the project proposal is formally accepted. This collaboration marks a significant milestone in India’s participation in the Middle East’s clean energy ambitions and reinforces L&T’s growing presence in the global green hydrogen ecosystem.
The Yanbu Green Hydrogen Hub is envisioned as a fully integrated facility, combining renewable power generation, desalination, hydrogen electrolysis, ammonia conversion, and export infrastructure. The project is expected to be operational by 2030 and will play a pivotal role in Saudi Arabia’s Vision 2030 strategy to diversify its energy mix and become a global leader in sustainable energy exports.
Key Takeaways From The Strategic MoU
- L&T has signed an MoU with ACWA Power to potentially execute the EPC scope for the Yanbu Green Hydrogen Hub.
- The agreement includes a commitment from L&T to enter into a formal EPC contract once the proposal is approved.
- The project will be located in Yanbu, Saudi Arabia, and is expected to be commercially operational by 2030.
- The hub will feature captive renewable energy generation, desalination plants, hydrogen electrolysis units, ammonia conversion facilities, and a dedicated export terminal.
- The MoU was signed during the Renewable Energy and Green Hydrogen Export Workshop held in Riyadh under the supervision of the Saudi Ministry of Energy.
Saudi’s Vision And Global Energy Integration
The Yanbu initiative is part of a broader push by Saudi Arabia to establish itself as a green energy export powerhouse. The project is strategically aligned with the India-Middle East-Europe Economic Corridor (IMEC), which aims to enhance logistics connectivity and clean energy integration across continents.
Saudi Arabia’s Ministry of Energy has been actively promoting cross-border energy corridors, and the Yanbu hub is expected to serve as a key node in this emerging network. The project also complements ACWA Power’s existing portfolio, which includes the Neom Green Hydrogen Project—slated to be the world’s largest when it launches in 2026.
L&T’s Expanding Global Footprint In Clean Energy
For L&T, the MoU represents a significant leap in its international EPC ambitions, particularly in the green hydrogen space. The company has been steadily building its credentials in renewable energy infrastructure, and this partnership with ACWA Power positions it at the heart of one of the most ambitious hydrogen projects in the world.
- L&T’s role will likely encompass design, engineering, procurement, construction, and commissioning of the entire facility.
- The company’s expertise in large-scale infrastructure and industrial projects makes it a natural fit for this complex undertaking.
- The MoU signals L&T’s intent to deepen its engagement in global decarbonization efforts and energy transition projects.
Collaborative Framework And Technical Partnerships
The Yanbu Green Hydrogen Hub is being developed through a multi-party framework involving several European and global energy players. ACWA Power has signed MoUs with companies like TotalEnergies Renewables SAS, Edison S.p.A., Zhero Europe B.V., and EnBW for various aspects of the project.
Additionally, technical partnerships have been formed with CESI, Prysmian, GE Vernova, Siemens Energy, and Hitachi Energy to support the development of high-voltage direct current (HVDC) transmission corridors and other infrastructure components.
What This Means For The Future Of Hydrogen
The Yanbu project is expected to produce green hydrogen and convert it into ammonia for export to Europe and other regions. With commercial operations targeted for 2030, the hub could become a cornerstone of global hydrogen supply chains.
- The project will leverage Saudi Arabia’s abundant solar and wind resources to power electrolysis.
- Desalinated water will be used as feedstock for hydrogen production.
- Ammonia conversion and export infrastructure will enable long-distance shipping of hydrogen derivatives.
Conclusion: A Defining Moment For Indo-Saudi Energy Collaboration
The MoU between L&T and ACWA Power is more than a business deal—it’s a strategic alignment of two nations’ energy futures. As the world pivots toward cleaner fuels, such collaborations will shape the contours of global energy trade and technology.
With execution excellence from L&T and visionary leadership from ACWA Power, the Yanbu Green Hydrogen Hub could redefine how nations collaborate on climate goals and energy security.
Sources: SaudiGulf Projects, The Energy Year, The Arabian Post
