Saudi Arabia’s ACWA Power has signed a Memorandum of Understanding (MoU) with Germany’s SEFE Securing Energy for Europe, marking a significant step in energy collaboration between the two nations. The agreement focuses on the production and supply of green hydrogen to meet Europe’s growing demand for sustainable energy.
The MoU was formalized by ACWA Power CEO Marco Arcelli and SEFE CEO Dr. Egbert Laege. Under this partnership, both companies will establish a hydrogen supply corridor between Saudi Arabia and Germany, with an initial goal of delivering 200,000 tonnes of green hydrogen annually by 2030.
ACWA Power will take the lead as the developer, investor, and operator of green hydrogen and green ammonia production assets, while SEFE will act as a co-investor and the primary offtaker. As one of Europe’s largest energy trading companies, SEFE will distribute the green hydrogen to its customers in Germany and across Europe, supporting the region’s decarbonization efforts.
This collaboration aligns with Saudi Arabia’s ambition to become a global leader in hydrogen production and Germany’s transition towards cleaner energy sources to reduce emissions. It also reinforces the Saudi-German energy dialogue, which aims to promote sustainable development, create job opportunities, protect the environment, and contribute to the goals of the Paris Agreement on climate change.
The agreement further expands ACWA Power’s growing green hydrogen portfolio. The company is already advancing the NEOM Green Hydrogen Project—a joint venture with Air Products and NEOM—which will be the world’s first utility-scale green hydrogen plant, producing 1.2 million tonnes of green ammonia annually.
This MoU represents a major milestone in international energy cooperation, paving the way for a cleaner and more sustainable future.