Saudi Arabia Refineries Co. (SARCO) has signed a non-binding memorandum of understanding (MoU) with UAE-based Go Energy to explore the development of a green hydrogen and ammonia production facility in Saudi Arabia. The proposed partnership aims to assess opportunities in clean energy production and support the Kingdom’s efforts to expand its renewable energy sector.
Under the agreement, both companies will undertake joint feasibility studies to evaluate the proposed facility. They will also work together to establish a legal structure and framework for their collaboration. The MoU will remain valid for one year, with the possibility of an extension subject to mutual agreement between the parties.
The companies have stated that the preliminary agreement will have no immediate financial impact and does not involve any related-party transactions. Instead, the arrangement is intended to explore new business opportunities and expand their service capabilities through cooperation in specialized energy projects.
The proposed facility aligns with Saudi Arabia’s broader strategy to diversify its energy mix and increase the use of renewable energy. The Kingdom aims to generate 50% of its electricity from renewable sources by 2030. It is also working to establish itself as a major global supplier of green hydrogen, with a target of reaching annual production capacity of 1.2 million tonnes by the end of the decade.
These ambitions form part of Saudi Arabia’s National Renewable Energy Program, which seeks to strengthen the domestic clean energy sector, reduce dependence on fossil fuels and support the country’s long-term environmental objectives.
Green hydrogen is produced by using renewable electricity to split water into hydrogen and oxygen through electrolysis. When renewable energy powers this process, hydrogen production can take place with minimal direct greenhouse gas emissions. The fuel is considered a potential solution for reducing emissions in industries and sectors where direct electrification can be challenging.
Saudi Arabia is also pursuing its target of achieving net-zero emissions by 2060. The country has been investing in both green and blue hydrogen projects, with major energy companies, including Saudi Aramco and ACWA Power, playing important roles in developing its hydrogen industry.
One of the Kingdom’s flagship initiatives is the large-scale green hydrogen project in NEOM, which is expected to support future production and exports of low-carbon fuels. The country is also pursuing international partnerships to strengthen its position in the global clean energy market.
ACWA Power’s agreements involving renewable electricity and green hydrogen exports to Europe represent another part of these efforts. Such initiatives are intended to connect Saudi Arabia’s renewable energy resources with international demand for cleaner energy supplies.
The proposed SARCO and Go Energy partnership adds to these developments by exploring further opportunities in green hydrogen and ammonia. The feasibility studies will help determine the potential for the project as Saudi Arabia continues to expand its clean energy infrastructure and develop its position in the emerging global hydrogen economy.
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