ACWA Power, a Saudi-listed company and the world's largest private water desalination company, a pioneer in green H₂, 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 H₂ 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 H₂ bridge between Saudi Arabia and Germany, with an initial target of supplying 200,000 tpy of green H₂ by 2030. ACWA Power will act as the lead developer, investor, and operator of green H₂ 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 H₂ to its German and European customers. This agreement aligns with Germany's growing demand for green H₂ as a sustainable solution to decarbonize its economy and meet climate goals.

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 H₂ portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonization.”

The cooperation between the two parties, within the framework of this MoU, aims to produce and export green H₂ 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 H₂. This cooperation aligns with the increasing demand for green H₂ 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 H₂ supply chain. It is actively developing H₂ transport and storage infrastructure in Germany, converting through its subsidiary GASCADE part of its 4,100 km pipeline network for H₂ transport under the FLOW project and building a new H₂ 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 H₂.

The agreement further strengthens ACWA Power’s rapidly growing green H₂ portfolio. Construction is already underway on the NEOM green H₂ project, a joint venture between ACWA Power, Air Products, and NEOM, which will be the world’s first utility-scale green H₂ plant, producing 1.2 MMtpy of green ammonia.

ACWA Power is also advancing its second green H₂ project in Uzbekistan, with the first phase set to produce 3,000 tpy of green H₂, 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 H₂ to Europe via the SoutH2 Corridor.