Saudi-listed Acwa Power has signed a memorandum of understanding ( MoU ) with German company Sefe Securing Energy for Europe GmbH. The collaboration aims to produce and supply green hydrogen to Europe, marking a pivotal step in strengthening energy cooperation between Saudi Arabia and Germany.

The agreement was signed in Riyadh by Acwa Power chief executive officer Marco Arcelli and Sefe CEO Egbert Laege.

Under the MoU, Acwa Power and Sefe will establish a hydrogen bridge between Saudi Arabia and Germany, with an initial target of supplying 200,000 tonnes of green hydrogen annually by 2030.

Acwa Power will act as the lead developer, investor, and operator of green hydrogen and green ammonia production assets. Sefe will serve as a co-investor and the primary offtaker, leveraging its position as one of Europe's largest energy trading companies to market the green hydrogen to its German and European customers.

The agreement aligns with Germany's growing demand for green hydrogen as a sustainable solution to decarbonize its economy and meet climate goals.

"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," says Arcelli.

"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. 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."

With a customer portfolio of 200 terawatt-hours annually ( TWh/a ), Sefe is positioned as a strategic partner in the green hydrogen supply chain. It is actively developing hydrogen transport and storage infrastructure in Germany, converting through its subsidiary Gascade part of its 4,100-kilometre pipeline network for hydrogen transport under the FLOW project and building a new hydrogen offshore pipeline – AquaDuctus – in the North Sea, as well as developing a large-scale facility in Jemgum capable of storing up to 500 gigawatt-hours of hydrogen.

The agreement further strengthens Acwa Power’s rapidly growing green hydrogen portfolio. Construction is already underway on the Neom Green Hydrogen Project, a joint venture between Acwa Power, Air Products, and Neom, which will be the world’s first utility-scale green hydrogen plant, producing 1.2 million tonnes of green ammonia annually.

Acwa Power is also advancing its second green hydrogen project in Uzbekistan, with the first phase set to produce 3,000 tonnes of green hydrogen annually, followed by an expanded second phase. Additionally, Acwa Power has signed MoUs with Tunisia and Egypt to explore projects aimed at producing and exporting green hydrogen to Europe via the SoutH2 Corridor.