Green Ammonia Plant Planned for Jazan Industrial City

Saudi Arabia Refineries Co. and China-based Ally Hydrogen Energy have signed a non-binding memorandum of understanding to develop a proposed green ammonia plant in Jazan Industrial City alongside a local hydrogen equipment manufacturing and assembly hub.

The agreement also includes plans to establish a local hydrogen equipment manufacturing and assembly hub alongside a research and development centre in cooperation with Saudi universities.

According to statements published through Tadawul, the memorandum will remain valid for one calendar year from the signing date unless extended through written agreement between both parties.

Saudi Arabia Refineries Co. stated that the project is expected to begin positively impacting its financial statements by the end of the third quarter of 2028.

Saudi Arabia is targeting annual green hydrogen production of 1.2 million tonnes by the end of the decade.

The announcement follows a series of hydrogen and ammonia-related agreements signed by Saudi Arabia Refineries Co. and its subsidiary Clean Energy Co. over the past year.

In February, Clean Energy Co. signed a memorandum with UK-based AGR covering offtake arrangements tied to a proposed green ammonia plant in Saudi Arabia.

The company also signed an agreement in October with UAE-based Go Energy to cooperate on the development of green hydrogen and ammonia projects within the Kingdom.

Saudi Arabia is currently developing several large-scale hydrogen projects, including the NEOM Green Hydrogen Project being developed through cooperation between ACWA Power, Air Products, and NEOM.