SINOPEC SEG (02386) announced that its wholly-owned subsidiary Sinopec Guangzhou Engineering Co., Ltd. (Guangzhou Engineering) has recently signed a convertible Front End Engineering Design (FEED) contract with Spanish company Técnicas Reunidas (TR Company) and Saudi International Power and Water Company (ACWA Power) for a large-scale green hydrogen project located in Yanbu, Saudi Arabia.

Under the contract, Guangzhou Engineering will form a consortium with TR Company to jointly provide front-end engineering design services for the project construction, with an expected execution period of 10 months. Upon completion of the contract, the consortium will submit an EPC (Engineering, Procurement and Construction) turnkey bidding proposal for the project to execute EPC turnkey services. The EPC turnkey contract for the project is expected to reach several billion dollars.

ACWA Power, headquartered in Riyadh, Saudi Arabia, is a global leading power and desalination development, investment and operation company, as well as a pioneer in green hydrogen and leader in energy transformation. The project is located in the Yanbu Industrial Zone in Saudi Arabia.

The project utilizes wind and solar power generation to produce green hydrogen and green ammonia, including a 4.2GW water electrolysis hydrogen production facility producing approximately 400,000 tons per year of green hydrogen, an 8,000 tons per day synthetic ammonia facility, seawater desalination plant, dedicated terminal, and other utility and auxiliary production facilities.

As the world's largest planned green hydrogen and green ammonia project, its successful implementation will provide a powerful engine for global energy transformation and strongly promote the large-scale development and application of green hydrogen and green ammonia technologies.