RIYADH: Saudi Arabia and Germany have signed an agreement to export 200k tonnes of green hydrogen annually from the Kingdom to Europe by 2030, strengthening their clean energy partnership.
The memorandum of understanding was inked between ACWA Power and the German energy trading company SEFE, and will see the Saudi company serve as the developer, investor, and primary operator of green hydrogen and ammonia production assets.
SEFE will act as a co-investor and key buyer and will be responsible for marketing the green hydrogen to its customers in Germany and Europe.
The deal was signed during a meeting between the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman and German Minister of Finance Jorg Kukies.
The agreement is part of the ongoing Saudi-German Energy Dialogue, and focuses on green hydrogen production, processing, and transportation.
This aligns with Saudi Arabia’s strategic push for clean energy, reinforcing the initiative’s goal to advance collaboration in renewables and hydrogen technologies while solidifying the Kingdom’s role in the global energy transition.
During the meeting, both sides explored areas of mutual interest in the energy sector, particularly clean hydrogen initiatives, building on the MoU signed between the two nations in 2021. This marks a continuation of Saudi Arabia and Germany’s growing energy cooperation following the agreement.
“By combining ACWA Power’s proven expertise in green hydrogen production with SEFE’s extensive market knowledge, we are forming a strong partnership to deliver substantial quantities of green hydrogen to Germany and beyond,” Marco Arcelli, CEO of ACWA Power, said in a statement.
He added: “This is contributing to global decarbonization efforts, European security of supply by offsetting gas demand, and industrial demand preservation in Europe by making available the most competitive green energy.”
Egbert Laege, CEO of SEFE, described the partnership as perfectly embodying the firm’s dual ambition of securing Europe’s energy supply while driving the energy transition.
“By expanding our green hydrogen portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonization,” he said.
Saudi Arabia is ramping up efforts to establish itself as a global leader in green hydrogen production and exports by leveraging its vast renewable energy resources, particularly solar and wind, which, due to its high solar irradiance, enable more efficient and cost-effective hydrogen production than countries like Germany.
Round table talks
Aside from the MoU signing, the German finance minister met with the Kingdom’s Minister of Finance Mohammed Al-Jadaan following a Saudi–German roundtable meeting in Riyadh.
In a post on X, Al-Jadaan said the two discussed “the most prominent global financial and economic developments.”
The roundtable was attended by a number of the largest private sector firms from both nations.
Saudi Arabia’s Ministry of Investment, National Center for Privatization, and the Financial Sector Development Program reviewed the investment opportunities available for German companies.
The roundtable also saw a focus on how human capital expertise in both conventional and renewable energy, and the industrial and manufacturing strength of Germany, are part of the ongoing relationship that contributes to achieving the goals of Vision 2030.
The German finance minister also held talks with the Saudi Minister of Economy and Planning Faisal Al-Ibrahim, with the pair discussing areas of economic, trade, and investment cooperation between the two countries, according to the Saudi Press Agency.
A further meeting involved the Kingdom’s Minister of Commerce Majid Al-Kassabi and Kukies, with the Saudi official posting on X that the pair talked about “strengthening the Kingdom’s economic and trade cooperation and developing promising opportunities in our two friendly countries.”
