ACWA Power, Saudi Arabia has signed a Memorandum of Understanding (MoU) with the German company SEFE Securing Energy for Europe.
The collaboration aims to produce and supply green hydrogen to Europe, marking a pivotal step in strengthening energy cooperation between Saudi Arabia and Germany.
The MoU was signed by Marco Arcelli, Chief Executive Officer of ACWA Power, and Dr Egbert Laege, Chief Executive Officer of SEFE.
Under the MoU, ACWA Power and SEFE will establish a hydrogen bridge between Saudi Arabia and Germany, with an initial target of supplying 200,000 tonnes of green hydrogen annually by 2030.
ACWA Power will act as the lead developer, investor, and operator of green hydrogen and green ammonia production assets. SEFE will serve as a co-investor and the primary offtaker, leveraging its position as one of Europe’s largest energy trading companies to market the green hydrogen to its German and European customers. This agreement aligns with Germany’s growing demand for green hydrogen as a sustainable solution to decarbonise its economy and meet climate goals.
The cooperation between the two parties, within the framework of this MoU, aims to produce and export green hydrogen to Europe, in a step that contributes to enhancing energy cooperation between Saudi Arabia and Germany. The Kingdom aspires to become one of the world’s largest producers and exporters of hydrogen. This cooperation aligns with the increasing demand for green hydrogen in Germany, which sees it as a sustainable solution for reducing emersions from its economic activities and achieving its climate goals.
It is also aligned with the ongoing Saudi-German energy dialogue, aiming to enhance developmental sustainability and prosperity, job opportunities in both countries, environmental protection, and to work towards achieving the goals of the Paris Agreement on climate change, particularly those related to reducing greenhouse gas emissions.
The agreement further strengthens ACWA Power’s rapidly growing green hydrogen portfolio. Construction is already underway on the NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM, which will be the world’s first utility-scale green hydrogen plant, producing 1.2 million tonnes of green ammonia annually.
