Saudi Arabia Advances Green Hydrogen Push with New Jazan Ammonia Project

Saudi Arabia is moving ahead with plans to expand its green hydrogen industry after Saudi Arabia Refineries Co. signed a new agreement with China’s Ally Hydrogen Energy to establish a green ammonia plant and hydrogen equipment manufacturing hub in Jazan Industrial City.

The non-binding memorandum of understanding includes plans to localize the manufacturing and assembly of hydrogen-related equipment in the Kingdom, according to a statement filed on Tadawul. The agreement also outlines the creation of a research and development center in partnership with Saudi universities to support innovation in green hydrogen and ammonia technologies.

The project forms part of Saudi Arabia’s broader strategy to expand renewable energy production and become a leading exporter of clean fuels. Under the Kingdom’s National Renewable Energy Program, Saudi Arabia aims to generate 50 percent of its electricity from renewable sources by 2030 and produce 1.2 million tonnes of green hydrogen annually by the end of the decade.

In its filing, the company stated that the memorandum became effective upon signing and will remain valid for one year unless both parties agree to extend it in writing.

Saudi Arabia Refineries Co., also known as SARCO, said the agreement is expected to have a positive impact on the company’s financial results by the third quarter of 2028.

The latest agreement follows a series of partnerships signed by the company as Saudi Arabia accelerates investment in hydrogen and ammonia projects.

In February, SARCO’s wholly owned subsidiary, Clean Energy Co., entered into a non-binding memorandum with UK-based renewable energy company AGR for the offtake of production from a proposed green ammonia plant in the Kingdom.

That agreement took effect on Feb. 5 and is scheduled to remain in place for six months unless extended by mutual consent.

Earlier, in October, SARCO also signed a cooperation agreement with UAE-based Go Energy to work on the development of a green hydrogen and ammonia project in Saudi Arabia. The deal remains valid for one year unless both sides agree to renew it.

Saudi Arabia has been intensifying efforts to position itself as a global center for hydrogen production as countries seek cleaner energy alternatives and lower-carbon industrial solutions.

The Kingdom is already home to several major hydrogen initiatives, including the large-scale NEOM green hydrogen project being developed by ACWA Power, Air Products and NEOM.

Officials see green ammonia as a major growth area because of rising international demand for cleaner fuels and low-carbon fertilizer products. Industry analysts say Saudi Arabia’s combination of renewable energy resources, industrial infrastructure and strategic location could help the Kingdom emerge as one of the world’s largest hydrogen exporters over the coming years.