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Saudi Arabia’s ACWA Power Seals Strategic Clean-Energy Deals with Europe

Prime Highlights

  • ACWA Power collaborates with major European energy players to provide green hydrogen and clean energy.
  • Yanbu Green Hydrogen Hub, together with Germany’s EnBW, commercial by 2030.

Key Fact

  • 50% of electricity from renewables and 1.2 million tonnes of green hydrogen production annually by 2030 for Saudi Arabia.
  • Partners include Edison, TotalEnergies, ZeroEurope, ENPW, CESI, Prysmian, GE Vernova, Siemens Energy, and Hitachi.

Key Background

Saudi ACWA Power took a titan leap towards positioning the Kingdom as a global leader for clean energy. At a high-profile seminar, ACWA Power inked several memorandums of understanding with leading European companies for exporting clean energy and green hydrogen.

Large transactions were also done with leading European utilities such as France’s TotalEnergles, Italy’s Edison, Netherlands’ ZeroEurope, and Germany’s ENPW. These deals are intended to secure commercial and market strategies for wholesale clean energy supply to Europe. Underpinning these commercial agreements, technical MoUs were signed with world-leading engineers such as CESI, Prysmian, GE Vernova, Siemens Energy, and Hitachi for additional transmission infrastructure and interconnection plans.

Such strategy plans are in accordance with Saudi Vision 2030 under which the country will commit to having 50 percent of the country’s energy be from renewable energy by 2030 and, as a process, ramp up green hydrogen production twice to 1.2 million tonnes per year by the end of the decade. Saudi Arabia will also form a key component of the India-Middle East-Europe Economic Corridor, from which it will leverage its strategic position to connect energy markets.

One of the landmarks on that journey is the opening of the Yanbu Green Hydrogen Hub, built with German utility company EnBW. The initial phase of the project, online by 2030, will have facilities for generation of renewable power, desalination, electrolysis, ammonia conversion, and export to develop an end-to-end value chain of clean energy.

With these advancements, ACWA Power and the other Saudi players such as Aramco are re-emerging in global clean-energy projects. Saudi Arabia’s target of going to net-zero by 2060, coupled with massive green and blue hydrogen investment in projects such as the hydrogen facility being developed by Neom, is placing it at the top of the transition.