Larsen & Toubro (L&T) Ltd. has signed a memorandum of understanding (MoU) with ACWA Power for the renewables and grid scope of the Yanbu Green Ammonia Project in Saudi Arabia.

The agreement sets a framework for collaboration on design, configuration, and performance targets for the renewables and grid systems. L&T has committed to enter into an engineering procurement and construction (EPC) contract once the final proposal is approved.

The Yanbu Green Hydrogen Hub will be a fully integrated facility with captive renewable electricity generation powered exclusively by solar and wind energy. Its renewables and grid scope includes solar PV, wind, and battery energy storage system plants, along with substations and transmission lines.

Marco Arcelli, CEO of ACWA Power, said: “By developing and exporting green ammonia, we aim to support international markets in their decarbonisation efforts and pave the way for a cleaner, more sustainable world.”

T Madhava Das, Member of the Board and Senior Executive Vice President (Utilities) at L&T, added that Saudi Arabia’s strategic location, competitive renewable costs, and mega-project approach make it an ideal hub for regional and international integration of clean energy, especially along the India–Middle East–Europe corridor.