Acwa Power, the Saudi power supplier, has signed an agreement with German energy trading company Securing Energy for Europe (Sefe) to supply 200,000 tonnes of green hydrogen a year by 2030.
Under the memorandum of understanding signed on Monday, 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, using its position as one of Europe’s largest energy trading companies to market the green hydrogen to its German and European customers.
Marco Arcelli, chief executive officer of Acwa Power, said: “The MoU represents a significant and important milestone for Saudi Arabia in becoming one of the world’s largest producers and exporters of hydrogen, and also in accelerating the green hydrogen economy in Europe.”
Hydrogen is a cleaner energy source that only emits water vapour when burned and leaves no residue in the air, unlike coal and oil. While producing hydrogen is an energy-intensive activity, using renewable energy to do so negates the emissions from production and makes it “green” hydrogen.
Acwa Power has a rapidly growing green hydrogen portfolio. Construction is already under way on the Neom Green Hydrogen Project, a joint venture between Acwa Power, Air Products and Neom, which is intended to 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 intended to produce 3,000 tonnes of green hydrogen a year.
Shares in Acwa Power were trading down roughly 2.5 percent on Monday at SAR394.
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