ACWA Power has signed a Memorandum of Understanding (MoU) with SEFE Securing Energy for Europe to produce and supply green hydrogen to Europe. The MoU was signed by ACWA Power CEO Marco Arcelli and SEFE CEO Egbert Laege.
Under the agreement, ACWA Power and SEFE will establish a hydrogen supply network between Saudi Arabia and Germany, with a target of delivering 200,000 tonnes of green hydrogen annually by 2030. ACWA Power will serve as the lead developer, investor, and operator of hydrogen and ammonia production assets. SEFE will act as a co-investor and the primary offtaker, using its position in the European energy market to distribute green hydrogen to customers in Germany and other European countries.
Germany is increasing its demand for green hydrogen as part of its strategy to reduce carbon emissions. The agreement between ACWA Power and SEFE is part of the ongoing Saudi German energy dialogue, which aims to support sustainable economic development, create jobs, protect the environment, and achieve emissions reduction goals under the Paris Agreement. SEFE is working on hydrogen infrastructure in Germany through its subsidiary GASCADE. It is also constructing the AquaDuctus offshore hydrogen pipeline in the North Sea and developing a large-scale hydrogen storage facility in Jemgum with a capacity of 500 GWh.
ACWA Power has been expanding its green hydrogen portfolio. It is leading the NEOM Green Hydrogen Project, a joint venture with Air Products and NEOM. ACWA Power has also signed MoUs with Tunisia and Egypt to explore green hydrogen production and export to Europe via the SoutH2 Corridor.
In Saudi Arabia, various renewable energy projects are under development. The Layla Solar PV Project, with a 91-megawatt capacity, is designed to integrate with the national grid. The Al Henakiyah Solar Plant, with 1,500 megawatts, is among the largest solar farms in the country.
