Saudi Arabia and Germany have signed a memorandum of understanding (MoU) to establish the Saudi-German Green Hydrogen Bridge, a joint venture between Saudi Arabia's ACWA Power and Germany's SEFE.

The project will focus on producing and exporting green hydrogen and green ammonia from Saudi Arabia to Europe.

The signing ceremony took place in Riyadh on Monday, attended by Saudi Energy Minister Prince Abdulaziz bin Salman and Germany’s Finance Minister Jörg Kukies.

Under the terms of the MoU, the two companies aim to export 200,000 tons of green hydrogen annually from Saudi Arabia to Europe by 2030. ACWA Power will serve as the developer, investor, and primary operator of the production assets for green hydrogen and green ammonia, while SEFE will be the co-investor and major buyer, utilizing its extensive network to market the hydrogen across Germany and Europe.

This initiative builds on the 2021 MoU between the two nations and is aligned with the broader Saudi-German Energy Dialogue, which seeks to enhance cooperation in renewable energy and clean hydrogen technologies.

SEFE, an international energy company, is focused on decarbonization and securing energy supplies across the European market.

The green hydrogen project is a crucial part of Saudi Arabia's strategy to position itself as a global leader in clean energy production, reinforcing its commitment to advancing sustainable energy solutions.