Saudi Arabian Refineries Company – SARCO has entered into a non-binding memorandum of understanding – MoU with Ally Hydrogen Energy Co., Ltd., the Chinese company, to establish two major clean energy projects located in Jazan Industrial City. These are going to be a green ammonia and hydrogen production plant in Jazan along with purification equipment.
The agreement is another move in the plan from SARCO to establish an integrated green hydrogen and ammonia hub in Saudi Arabia and to support the ambitions of the Kingdom to be a dominant force in the global clean energy market.
The MoU will witness the two companies collaborate to set up a green ammonia plant in Jazan Industrial City, capitalising on the strategic location of the region along with its industrial infrastructure so as to serve future exports along with local demand.
The partners additionally intend to establish a local manufacturing and assembly hub for hydrogen production as well as purification equipment, with the goal of localising advanced technology and developing a supply chain for the developing hydrogen sector of Saudi Arabia.
The agreement on green ammonia and hydrogen production plant in Jazan also detailed plans for a research and development centre collaborating with Saudi universities in order to drive innovation within green hydrogen and ammonia technologies and at the same time foster local expertise.
It is well to be noted that the memorandum on green ammonia and hydrogen production plant in Jazan came into force on May 15, 2026, and will remain in effect for a period of one year, except if modified by mutual agreement.
The transaction is projected to be beneficial to SARCO’s financials by the close of the third quarter of 2028, SARCO stated.
The agreement is a follow-up to previously existing strategic partnerships, including an MoU executed with Go Energy in October 2025 and one inked by its wholly owned subsidiary Clean Energy Company along with AGR Renewable Energy in February 2026, the company said.
The latest deal is a selection of the final supplier for the suggested green ammonia plant, as stated by SARCO.