The pair are in advanced negotiations to cement a partnership that will de-risk and progress two key production projects: the Louisiana Clean Energy Complex in the USA, and NEOM in Saudi Arabia.
Located in Yanbu, a strategically-positioned port city on the Red Sea, 4 GW of electrolysis will feed the production of 400,000 tons of renewable hydrogen per year, or more than 2.2 million tons of renewable ammonia – twice the size of the under-construction NEOM project.
From 2027, the NEOM Green Hydrogen project will produce about 600 tons per day of renewable hydrogen, equivalent to 1.2 million tons per year of renewable ammonia. Project construction is now 80% complete.
ACWA and Italian gas pipeline operator Snam have agreed to explore collaboration and joint investments to establish a supply chain to Europe, including the development of an ammonia import terminal in southern Italy.
ACWA Power will develop a 150,000 tonnes-per-year renewable ammonia project in Indonesia, powered by 600 MW of wind and solar energy. The Saudi-based company also commenced construction on the first phase of its 500,000 tonnes-per-year renewable ammonia project in Uzbekistan, and has progressed development of a renewable mega-project near the Suez Canal.
The million-tonne-per-year, $8.4 billion renewable hydrogen & ammonia production facility will be built near Al Muwaileh, Saudi Arabia. Project partner Air Products will act as EPC contractor, and has also secured exclusive ammonia offtake rights from NEOM for thirty years.
Mitsui & Co., INPEX and Japanese government agency JOGMEC will partner with ADNOC to verify the emissions intensity of ammonia produced at a new project in al-Ruwais, UAE. The final methodology is likely to reflect the definition of clean ammonia currently being developed in Japan. Shipments of CCU-based ammonia have arrived in Japan & India in recent weeks from SABIC in Saudi Arabia, further highlighting the potential of Middle East supply chains.
Saudi-based ACWA Power has signed agreements to explore the overseas production of hydrogen & ammonia with two organisations: South Korean power utility KEPCO, and government-owned finance body the Industrial Development Corporation of South Africa.
