RIYADH: Jazan Industrial City will host a new green ammonia plant under a new agreement between Saudi Arabia Refineries Co. and China’s Ally Hydrogen Energy to establish a local hydrogen equipment manufacturing and assembly hub.
The new non-binding memorandum of understanding will also include the establishment of a research and development center in partnership with Saudi universities to advance innovation in green hydrogen and ammonia technologies, according to a Tadawul statement.
The deal aligns with Saudi Arabia’s strategy to generate 50 percent of its electricity from renewable sources by 2030 and become a major exporter of green hydrogen, targeting annual production of 1.2 million tonnes by the end of the decade under the Kingdom’s National Renewable Energy Program.
In a bourse filing, the company said: “This memorandum shall become effective from the date of its signing by the parties and shall remain valid for a period of one calendar year, unless the Parties agree otherwise in writing.”
It added: “This transaction is expected to have a positive impact on the financial statements of SARCO by the end of the third quarter of 2028.”
In February, SARCO’s wholly owned subsidiary, Clean Energy Co., signed a non-binding MoU with UK-based renewable energy firm AGR for the offtake of the output from a proposed green ammonia plant in the Kingdom. The agreement took effect on Feb. 5 and will remain valid for six months unless extended by mutual written consent.
The Saudi-listed refining company had previously signed an MoU with UAE-based Go Energy in October to cooperate on the development of a green hydrogen and ammonia project in Saudi Arabia. The agreement remains valid for one year unless extended by mutual consent.
Saudi Arabia is accelerating efforts to position itself as a global leader in the hydrogen economy through major investments in green and blue hydrogen projects aimed at supporting the Kingdom’s energy transition and expanding its clean fuels industry.
The Kingdom is already home to several large-scale hydrogen projects, including the NEOM green hydrogen initiative being developed by Acwa, Air Products and NEOM.
The country is also targeting significant growth in green ammonia production to meet rising international demand for low-carbon energy and fertilizer solutions.
