Spanish engineering giant Técnicas Reunidas has secured a front-end engineering design (FEED) contract for a major green hydrogen and ammonia plant in South Africa, opening the door to a potential $1.8 billion engineering, procurement and construction (EPC) deal.

 

Hive Hydrogen South Africa (HHSA) has awarded Técnicas Reunidas the contract to design a facility capable of producing approximately one million metric tons of green ammonia a year for domestic and international markets.

 

The project is being developed in the Coega Special Economic Zone, next to the Port of Ngqura in Nelson Mandela Bay, Eastern Cape.

 

HHSA announced the award at the Africa Green Hydrogen Summit in Cape Town, marking Técnicas Reunidas’ entry into the South African market and adding another major project to the company’s growing portfolio of low-carbon engineering work.

 

The FEED contract could ultimately lead to the construction phase. HHSA intends for the company selected for FEED to move into the full EPC phase, provided the engineering work is successfully completed, the required technical and commercial conditions are met, approvals and financing are secured, and a final investment decision is taken.

 

HHSA said Técnicas Reunidas was selected “after a long and in-depth period of World Leading EPC proposal evaluations”, highlighting the Spanish firm's “extensive international experience in the engineering and delivery of large-scale energy, hydrogen, ammonia and complex industrial process facilities.”.

 

The proposed green ammonia plant represents an estimated $1.8 billion investment, according to HHSA.

 

Técnicas Reunidas’ FEED scope covers virtually the full production chain, including hydrogen electrolyzers, air separation units and the green ammonia production loop.

 

The engineering package will also include a desalination plant, storage facilities capable of holding more than 100,000 metric tons, pipelines connecting the project to the Port of Ngqura, and auxiliary infrastructure.

 

The project will use renewable electricity to produce green hydrogen, which will then be converted into green ammonia for both South African consumption and export markets.

 

Gonzalo Pardo, commercial director of Track&Services at Técnicas Reunidas, said “we are delighted to have been selected by Hive for this world-leading decarbonization project. Leveraging our deep technology expertise and end-to-end EPC vision, we look forward to delivering a successful FEED and contributing to Coega’s role as a benchmark for Africa’s sustainable industrial growth. 

 

"Furthermore, this award is perfectly aligned with the strong focus on services projects that Técnicas Reunidas is currently implementing as part of its SALTA Strategic Plan.”

 

For Hive, the project is intended to become a large-scale renewable hydrogen and green ammonia hub centred on the Coega industrial zone.

 

John Nutt, Hive’s technical director, said “Técnicas Reunidas proposal was outstanding in all respects. We are looking forward to them adding significant value and improving further on the tremendous work that has already gone into the development of the ammonia production plant to date that will make it the most efficient, large scale green hydrogen and green ammonia project. Our aim remains to produce the lowest cost Green Ammonia globally.”

 

The project is targeting annual green ammonia production of approximately one million tonnes, with output intended for both domestic use and international export.

 

The award fits Técnicas Reunidas’ broader push to expand its services business under its SALTA Strategic Plan, particularly in sectors linked to industrial decarbonization and the energy transition.