• Saudi Minister of Energy and German Minister of Finance witness landmark agreement

• ACWA Power and SEFE aim to build a hydrogen bridge between Saudia Arabia and Germany, starting with the supply of 200,000 tonnes of green hydrogen annually by 2030

• SEFE, as co-investor and prime off-taker, to market green hydrogen to its German and European customers

Riyadh, Kingdom of Saudi Arabia: In the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz, the Minister of Energy, and the German Federal Minister of Finance, Dr H.E. Jörg Kukies, ACWA Power, a Saudi-listed company and the world’s largest private water desalination company, a pioneer in green hydrogen, and a leader in energy transition, has signed a Memorandum of Understanding (MoU) with the German company SEFE Securing Energy for Europe. 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 MoU was signed by Marco Arcelli, Chief Executive Officer of ACWA Power, and Dr Egbert Laege, Chief Executive Officer of SEFE. 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. This agreement aligns with Germany’s growing demand for green hydrogen as a sustainable solution to decarbonise 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. 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 decarbonisation efforts, European security of supply by offsetting gas demand, and industrial demand preservation in Europe by making available the most competitive green energy.” Marco Arcelli, Chief Executive Officer of ACWA Power

Dr Egbert Laege, Chief Executive Officer of SEFE, 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 cooperation between the two parties, within the framework of this MoU, aims to produce and export green hydrogen to Europe, in a step that contributes to enhancing energy cooperation between Saudi Arabia and Germany. The Kingdom aspires to become one of the world’s largest producers and exporters of hydrogen. This cooperation aligns with the increasing demand for green hydrogen in Germany, which sees it as a sustainable solution for reducing emersions from its economic activities and achieving its climate goals.

It is also aligned with the ongoing Saudi-German energy dialogue, aiming to enhance developmental sustainability and prosperity, job opportunities in both countries, environmental protection, and to work towards achieving the goals of the Paris Agreement on climate change, particularly those related to reducing greenhouse gas emissions. 

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 km 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 GWh 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.