- Saudi Minister of Energy and German Minister of Finance witness landmark agreement
- ACWA Power and SEFE aim to build a hydrogen bridge between Saudia Arabia and Germany, starting with the supply of 200,000 tonnes of green hydrogen annually by 2030
- SEFE, as co-investor and prime off-taker, to market green hydrogen to its German and European customers
In the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Arabia’s Minister of Energy, and Dr. H.E. Jörg Kukies, the German Federal Minister of Finance, ACWA Power, a leading Saudi-listed company and the world’s largest private water desalination firm, signed a Memorandum of Understanding (MoU) with SEFE Securing Energy for Europe. This collaboration aims to produce and supply green hydrogen to Europe, marking a significant step in enhancing 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.
Marco Arcelli, CEO of ACWA Power, highlighted that the MoU marks a key step for Saudi Arabia in becoming a leading hydrogen producer and exporter. By combining ACWA Power’s expertise in green hydrogen with SEFE’s market knowledge, the partnership aims to supply significant quantities of green hydrogen to Germany and Europe, supporting decarbonization, energy security, and competitive green energy availability.
Dr. Egbert Laege, Chief Executive Officer of SEFE, stated that the partnership embodies SEFE’s dual ambition of securing Europe’s energy supply while advancing the energy transition. By expanding its green hydrogen portfolio and investing in local production, SEFE is equipping itself with solutions to assist its customers in achieving decarbonization.
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.
With a customer portfolio of 200 terawatt-hours annually (TWh/a), SEFE is positioned as a strategic partner in the green hydrogen supply chain. It is actively developing hydrogen transport and storage infrastructure in Germany, converting through its subsidiary GASCADE part of its 4,100 km pipeline network for hydrogen transport under the FLOW project and building a new hydrogen offshore pipeline – AquaDuctus – in the North Sea as well as developing a large-scale facility in Jemgum capable of storing up to 500 GWh of hydrogen.
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.
ACWA Power is also advancing its second green hydrogen project in Uzbekistan, with the first phase set to produce 3,000 tonnes of green hydrogen annually, followed by an expanded second phase. Additionally, ACWA Power has signed MoUs with Tunisia and Egypt to explore projects aimed at producing and exporting green hydrogen to Europe via the SoutH2 Corridor.
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