The MoU was signed in the presence of the Saudi Minister of Energy, HRH Prince Abdulaziz bin Salman and the German Federal Minister of Finance, Dr Jörg Kukies. The agreement was formalised by Dr Egbert Laege, SEFE CEO and Marco Arcelli, ACWA Power CEO.
Under the MoU, SEFE and ACWA Power 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 off-taker, 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 its climate goals.
Dr Egbert Laege, SEFE CEO, commented: “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 the local production, we are equipping ourselves with solutions to help our customers achieve decarbonisation.”
Marco Arcelli, ACWA Power CEO, added : “This MoU with SEFE marks a significant milestone 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, making a meaningful contribution to global decarbonisation efforts.”
With a customer portfolio of 200 terawatt-hours annually (TWh/a), SEFE is well 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 parts 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 at 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.
