Saudi Arabia to export green hydrogen to Europe
Saudi Arabia is ramping up its production and export of green hydrogen and
ammonia to Europe, following a new deal between the Kingdom’s ACWA Power and
Germany’s SEFE. This agreement, signed in Riyadh, aims to enhance the Kingdom’s
role in the European clean energy market.
The signing ceremony was attended by Saudi Energy Minister Prince Abdulaziz
bin Salman and German Finance Minister Jörg Kukies. This partnership is part of
Saudi Arabia’s broader strategy to export clean energy products to European
countries. In January, ACWA Power also signed an MoU with Italy’s Snam to
explore green hydrogen supply chain opportunities to Europe.
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As part of this new deal, ACWA Power will lead the development, investment,
and operation of green hydrogen and ammonia production. SEFE will serve as a
co-investor and primary buyer, tasked with marketing and selling the green
hydrogen across Germany and Europe.
During the signing, Prince Abdulaziz and Minister Kukies also discussed key
energy issues and further collaboration on clean hydrogen efforts, building
upon a 2021 agreement between the two nations.
Saudi Arabia is progressing with the NEOM Green Hydrogen Project, which is
set to become the world’s largest facility for producing green ammonia and
hydrogen using renewable energy. Scheduled for completion in 2026, the plant
will produce 600 metric tons of clean hydrogen daily via electrolysis and
generate 1.2 million metric tons of green ammonia annually.
Dr. Mohammed Al-Sabban, former senior advisor to Saudi Arabia’s oil
minister, emphasized that the partnership between Saudi and German companies
underscores the strong interest in clean hydrogen and ammonia. These products,
destined for European markets, will be vital in adding value to Saudi Arabia’s
green hydrogen and ammonia production, boosting its non-oil economy and
supporting its climate change targets.
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Energy expert Fuad Al-Zayer, former OPEC information director, pointed out
that Saudi Arabia is on track to meet its goal of sourcing 50% of its energy
from renewables. He highlighted that the Kingdom’s location and the NEOM
project give it a significant advantage in green hydrogen production,
positioning it to lead globally.
Al-Zayer also noted that European nations, particularly Germany, are seeking
alternative sources of energy as they transition away from oil and gas. In
2022, Germany opened a hydrogen diplomacy office in Riyadh to explore further
cooperation in this area.
Saudi Arabia aims to become a global leader in energy exports, aligning with
both countries' goals of achieving a sustainable and diversified energy future.
Source: Asharq Al Awsat
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