Saudi energy company ACWA Power and German firm SEFE have signed an MoU to supply 200,000 tonnes of green hydrogen yearly. The agreement will help Europe move towards clean energy and reduce carbon emissions.
The signing took place in the presence of Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, and Germany’s Finance Minister, Dr. Jörg Kukies. ACWA Power will lead the production, while SEFE will invest and distribute hydrogen across Europe.
A Major Step for Green Hydrogen
ACWA Power CEO Marco Arcelli said, “The MoU represents a significant and important milestone for Saudi Arabia in becoming one of the world’s largest producers and exporter of hydrogen, and also in accelerating the green hydrogen economy in Europe.
“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.”
SEFE CEO Dr. Egbert Laege added, “This partnership perfectly embodies our dual ambition: 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 decarbonisation.”
The MoU is part of Germany’s push to cut carbon emissions and meet climate targets. Saudi Arabia also wants to become a top global hydrogen exporter.
SEFE is building hydrogen storage and transport infrastructure in Germany. It is converting 4,100 km of pipelines and constructing a new offshore pipeline. The company is also developing a storage facility that will hold 500 GWh of hydrogen.
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More Green Hydrogen Projects Underway
ACWA Power is working on the NEOM Green Hydrogen Project in Saudi Arabia. It will be the world’s first large-scale green hydrogen plant.
The company is also developing a project in Uzbekistan and exploring opportunities in Tunisia and Egypt. These African nations could play a key role in supplying green hydrogen to Europe through the SoutH2 Corridor, strengthening Africa’s participation in the global clean energy transition.
This partnership will strengthen Saudi-German energy ties. It also supports global decarbonization, energy security, and sustainable development goals.