Saudi Arabia Refineries Company (SARCO) has signed a non-binding memorandum of understanding (MoU) with China’s Ally Hydrogen Energy to establish a green ammonia production plant in Jazan Industrial City.

The MoU also targets the establishment of a local centre for assembling and manufacturing hydrogen production and purification equipment in Jazan Industrial City, and a research and development centre in cooperation with local Saudi universities to promote innovation in green hydrogen and ammonia technologies.

No other details were given on the green ammonia production plant.

The MoU will take effect on the signing date and remain valid for one year unless otherwise agreed in writing.

In February, SARCO’s wholly owned subsidiary, Clean Energy Company, entered into a non-binding MoU with UK-based renewable energy company AGR for the offtake of production from a planned green ammonia facility in the Kingdom.

The Saudi-listed oil company had signed a non-binding MoU with UAE-based Go Energy in October 2025 to collaborate on developing a green hydrogen (ammonia) project in Saudi Arabia.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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