Bankinter | It will be the largest green hydrogen complex in the world. It will be built in Yanbu and its client is ACWA Power (owned by the Saudi sovereign wealth fund). The first design phase (Feed) includes a facility for the production of 400,000 tonnes per year of green hydrogen (with 4GW of installed electrolysis capacity) and its conversion through synthesis cycles to green ammonia, as well as all auxiliary facilities and systems, including water desalination and a dedicated export terminal. The first design phase will last 10 months. Subsequently, if all goes well, it will become a turnkey contract (EPC).
Bankinter analysis team’s view: This is positive news because it allows the company to enter the world’s largest green hydrogen project. It also consolidates its presence in a key market for Técnicas such as Saudi Arabia. Finally, it is doing so alongside Sinopec, the company that controls the largest green hydrogen plant to date, in Kuqa (China). In this context, we reiterate our Buy recommendation, due to the positive performance in contracting, the improvement in its net cash position, which is key to accessing new contracts, and the increase in margins.
