Riyadh – Mubasher: Saudi Arabian Refineries Company (SARCO) has signed a non-binding memorandum of understanding (MoU) with Ally Hydrogen Energy Company from China to develop a comprehensive green ammonia and hydrogen infrastructure project in Jazan Industrial City.

The agreement outlines plans for a production facility, a localized manufacturing hub for hydrogen equipment, and a collaborative research and development center, marking a significant step in SARCO’s expansion into the renewable energy sector, according to a bourse disclosure.

Upon the MoU that was signed on 15 May 2026, the Saudi listed company aims to advance the Kingdom’s green energy capabilities.

The memorandum, which is effective for one calendar year from the date of signing, establishes a framework for three primary industrial and scientific initiatives located in the industrial city.

The first pillar of the agreement involves the establishment of a dedicated plant for the production of green ammonia. This facility is intended to serve as a cornerstone for sustainable industrial output in the region.

Furthermore, the two companies intend to launch a Research and Development (R&D) center. This initiative will be conducted in coordination with local Saudi universities to drive innovation in green hydrogen and ammonia technologies.

The R&D center is designed to foster academic and industrial collaboration, ensuring that the latest technological advancements are integrated into the Kingdom’s energy transition efforts.

Regarding the financial implications, SARCO expects the partnership to yield a positive impact on its financial statements by the end of the third quarter (Q3) of 2028.

 The company also confirmed that there are no related parties involved in the signing of this memorandum.

SARCO previously signed a non-binding MoU with Go Energy on 12 October 2025, and its wholly-owned subsidiary Clean Energy Company signed a similar agreement with the British firm AGR Renewable Energy on 5 February 2026.

In its latest disclosure, SARCO clarified that Ally Hydrogen Energy has been identified as the final supplier for the green ammonia plant project.