China’s Sinopec has deepened its ties with Saudi Arabia’s energy sector through a new deal with ACWA Power in Yanbu. The agreement focuses on engineering services for what will soon become the world’s largest integrated green hydrogen project and green ammonia facility.
The project aims to harness both wind and solar energy. Once completed, it will produce about 400,000 metric tons of green hydrogen and 2.8 million tons of green ammonia each year. This ambitious initiative underscores Saudi Arabia’s push to diversify its energy sector and lead the global transition to clean energy.
Sinopec Engineering Group, a subsidiary of Sinopec, will carry out the front-end engineering design. In addition, it will manage convertible engineering, procurement, and construction responsibilities. This structured approach highlights how seriously both sides view the green hydrogen project.
Furthermore, Sinopec announced that the facility is expected to begin commercial operations in 2030. Although financial details remain undisclosed, industry experts believe the investment scale will be significant. The collaboration demonstrates the alignment between Chinese expertise and Saudi Arabia’s strategic vision for renewable energy.
Sinopec already maintains a strong presence in Saudi Arabia. The company is part of a joint venture with Aramco at the YASREF refinery in Yanbu, which is expanding into a major petrochemicals hub. This long-standing relationship makes Sinopec a trusted partner for new developments.
Moreover, the Chinese firm has recently taken on several large-scale projects in the kingdom. These include a $1.1 billion gas pipeline contract and engineering roles in other hydrogen and ammonia megaprojects. Each project cements Sinopec’s role as a key contributor to Saudi Arabia’s clean energy ambitions.
As the kingdom works toward its Vision 2030 targets, the collaboration with Sinopec becomes even more important. The green hydrogen project symbolizes how global partnerships can accelerate the shift from traditional energy sources to sustainable solutions.
Saudi Arabia continues to position itself as a leader in renewable energy. By joining forces with Sinopec, the country shows determination to reshape the future of the global energy market.
