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In a significant step toward strengthening Europe’s hydrogen supply chain, Germany’s Securing Energy for Europe (SEFE) and Saudi Arabia’s ACWA Power have signed a Memorandum of Understanding (MoU) to develop large-scale green hydrogen production and supply infrastructure. This partnership aims to establish a direct hydrogen corridor between Saudi Arabia and Germany, with an initial goal of delivering 200,000 tonnes of green hydrogen annually by 2030.
Under the agreement, ACWA Power will take the lead in developing, investing in, and operating green hydrogen and ammonia production assets, leveraging its extensive experience in large-scale renewable energy projects. SEFE, in turn, will act as a co-investor and serve as the primary offtaker, ensuring that green hydrogen reaches German and European markets. This partnership represents a crucial advancement in the global hydrogen economy, providing a scalable and sustainable energy alternative at a time when Europe is actively seeking to diversify its energy sources and reduce its reliance on fossil fuels.
According to SEFE’s CEO, Egbert Laege, the partnership aligns with the company’s broader ambition of securing Europe’s energy supply while accelerating the shift toward carbon neutrality. By investing in large-scale green hydrogen production, SEFE is positioning itself as a key player in the European energy transition, ensuring that its customers have access to sustainable alternatives for industrial use, transportation, and power generation. Similarly, Marco Arcelli, CEO of ACWA Power, emphasized the strategic significance of the agreement, noting that the collaboration will fast-track Europe’s transition to a hydrogen-based economy by combining ACWA Power’s expertise in renewable hydrogen production with SEFE’s market reach.
This deal is particularly important for the developing hydrogen market, as it signals a strong commitment from both public and private entities to establish hydrogen as a viable energy carrier. The success of large-scale hydrogen projects relies not only on production but also on infrastructure development, market demand, and international cooperation. SEFE’s ongoing efforts to develop hydrogen transport and storage networks, such as the FLOW project, which is converting parts of its 4,100 km gas pipeline network for hydrogen transport, and the AquaDuctus offshore hydrogen pipeline in the North Sea, underscore the company’s commitment to establishing a fully integrated hydrogen economy in Europe. Additionally, its 500 GWh hydrogen storage facility in Jemgum will play a crucial role in ensuring supply security, mitigating fluctuations in renewable energy availability, and enhancing energy resilience.
From a geopolitical and economic perspective, this agreement also highlights Saudi Arabia’s growing influence in the global hydrogen market. The Kingdom, through ACWA Power, is rapidly expanding its green hydrogen production capabilities, with the NEOM Green Hydrogen Project already under construction and expected to produce 1.2 million tonnes of green ammonia annually. ACWA Power’s investments in Uzbekistan and its plans to export hydrogen to Europe via the SoutH2 Corridor further reinforce Saudi Arabia’s ambition to become a dominant player in the global hydrogen economy.
This collaboration also demonstrates the increasing role of hydrogen trade partnerships between Europe and energy-rich nations outside the continent. SEFE has been actively pursuing similar agreements, including its recent MoU with Norwegian company Höegh Evi to develop clean hydrogen supply chains and its joint study agreement with Brazil’s Eletrobras and Kuwait’s EnerTech to source 200,000 tonnes of hydrogen annually from Brazilian hydropower. Such initiatives are crucial for scaling up the hydrogen market, driving down costs, and creating a globally connected hydrogen supply network.
Ultimately, the SEFE-ACWA Power partnership is a major step toward the commercialization of green hydrogen, moving beyond pilot projects to large-scale production and trade. The hydrogen market has long been constrained by high production costs, limited infrastructure, and uncertainty around demand, but agreements like this provide the investment certainty needed to drive market growth. By creating long-term supply chains, integrating hydrogen transport networks, and fostering cross-border cooperation, this collaboration brings green hydrogen closer to becoming a mainstream energy source.
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