In a landmark agreement poised to reshape the energy landscape, Saudi Arabia’s ACWA Power and German firm SEFE have signed a memorandum of understanding to supply 200,000 tonnes of green hydrogen annually to Germany and Europe by 2030.
The deal, forged by Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz and German Finance Minister Jorg Kukies, underscores a deepening energy partnership between the two nations.
Under the terms of the agreement, ACWA Power, a global leader in energy transition and water desalination, will spearhead the development, investment and operation of green hydrogen and ammonia production facilities.
SEFE, as a co-investor and the primary off-taker, will distribute the hydrogen to German and European customers through its extensive energy trading network.
“This partnership perfectly embodies our dual ambition: securing Europe’s energy supply while driving the energy transition,” said SEFE CEO Dr. Egbert Laege, in a statement. “By expanding our green hydrogen portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonization.”
Saudi Arabia’s Hydrogen Ambitions
Saudi Arabia has set its sights on becoming one of the world’s largest producers and exporters of hydrogen, a goal that aligns with Germany’s accelerating demand for clean energy solutions to decarbonize its industries.
As part of this broader vision, Germany is investing heavily in hydrogen infrastructure, including converting existing gas networks and developing offshore pipelines like AquaDuctus in the North Sea.
SEFE, with a customer portfolio of 200 terawatt-hours annually, is at the forefront of Europe’s green energy transition. Its subsidiary, GASCADE, is repurposing 4,100 kilometers of pipeline infrastructure for hydrogen transport under the FLOW project.
Additionally, SEFE is constructing a large-scale storage facility in Jemgum that can hold up to 500 gigawatt-hours of hydrogen.
ACWA Power’s Expanding Hydrogen Portfolio
ACWA Power’s agreement bolsters its rapidly expanding hydrogen portfolio. The company is already constructing the NEOM Green Hydrogen Project in Saudi Arabia, a pioneering venture slated to produce 1.2 million tonnes of green ammonia annually.
Beyond Saudi Arabia, ACWA Power is advancing hydrogen initiatives in Uzbekistan, Egypt, and Tunisia, further solidifying its position as a key player in the global hydrogen economy.
The Saudi-German energy dialogue has fostered this collaboration, emphasizing sustainability, job creation and environmental stewardship in line with the Paris Agreement’s climate objectives.
As both nations accelerate efforts to transition away from fossil fuels, this agreement marks a significant step toward a cleaner, hydrogen-powered future for Europe.
