Saudi Arabia to Export 200,000 Tons of Green Hydrogen to Germany

Germany’s state-owned energy company, SEFE, signed a memorandum of understanding with Saudi Arabia’s ACWA Power. The agreement will see 200,000 tons of hydrogen, in the form of ammonia, exported annually from Saudi Arabia to Europe starting in 2030.

The hydrogen will be produced using wind and solar power, with an estimated energy content of 6.7 terawatt-hours. This aligns with Germany’s hydrogen strategy, which projects the need for 45 to 90 terawatt-hours of hydrogen imports by 2030. The fuel is expected to play a crucial role in Germany’s efforts to decarbonise its industry, particularly in steel production, and as a backup for intermittent renewable energy sources such as wind and solar power.

ACWA Power, a major developer of renewable energy projects headquartered in Saudi Arabia, aims to position itself as a leading producer of green hydrogen and ammonia. SEFE, which will serve as a co-investor and primary off-taker, will market the hydrogen to European customers. The agreement was formalised in Riyadh in the presence of Saudi Energy Minister Prince Abdulaziz bin Salman and German Finance Minister Jörg Kukies.

SEFE has also secured agreements with Brazil’s Elektrobras for an additional 200,000 tons of hydrogen per year starting in 2030, as well as a long-term deal with Norway’s Equinor for low-carbon hydrogen supply between 2029 and 2060.