Saudi Arabia and Germany have signed a memorandum of understanding (MoU) to export 200,000 tonnes of green hydrogen annually from Saudi Arabia to Europe by 2030. The deal, finalized between ACWA Power, a Saudi energy company, and the German energy trading firm SEFE, aims to enhance both countries' clean energy cooperation.

Under the agreement, ACWA Power will lead the development, investment, and operation of green hydrogen and ammonia production, while SEFE will co-invest and serve as the key buyer and distributor in Germany and Europe.

This initiative continues the growth of the Saudi-German energy dialogue and aims to advance green hydrogen production, processing, and transportation, with the goal of boosting the global energy transition.

The deal was signed in a meeting between Saudi Minister of Energy Prince Abdulaziz bin Salman and German Minister of Finance Jörg Kukies.

Saudi Arabia is leveraging its abundant renewable energy resources, particularly solar and wind, to produce green hydrogen more efficiently and cost-effectively than countries like Germany.

The MoU is a continuation of a previous agreement signed in 2021, focusing on renewable energy and hydrogen technologies.

Both sides also discussed financial and investment cooperation, with Saudi Arabia offering opportunities for German businesses as part of the Kingdom’s Vision 2030 development goals.

The agreement marks a significant step in the two nations' efforts to address global decarbonization and energy security.