Saudi-based ACWA Power and Italy’s Snam have signed a major deal to explore joint investments in green hydrogen, aiming to establish an international supply chain from Saudi Arabia to Europe.
The memorandum of understanding (MoU) is expected to bolster Europe’s transition to renewable energy and securing a stable hydrogen supply.
Under the partnership, the companies will assess the feasibility of a green hydrogen supply corridor linking Saudi Arabia with key European markets, including Italy, Austria, and Germany.
A crucial aspect of the collaboration is the potential development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen via the 3,300km South H2 Corridor, which connects southern Europe to central European energy hubs.
ACWA Power, a publicly listed Saudi firm and a global leader in water desalination and renewable energy, has been at the forefront of green hydrogen and ammonia projects. Snam, a major European operator in natural gas transportation, storage, and regasification, is working to build a pan-European multi-molecule infrastructure that supports energy security and Net Zero ambitions.
“With power sector emissions already down 40% compared to 20 years ago, we now need to focus our collective efforts on new, low-carbon molecules to decarbonize our sectors. Bringing our expertise together will help accelerate this process,” said Marco Arcelli, Chief Executive Officer of ACWA Power.
Stefano Venier, Chief Executive Officer of Snam, highlighted the role of hydrogen in meeting the European Union’s ambitious decarbonization targets. “The EU’s ambitious decarbonization targets need decisive action across all manufacturing sectors, utilizing all available technologies in a practical, efficient, and accelerated manner. Hydrogen plays a key role here, and we are glad to pursue development opportunities in this field through agreements like the one signed with ACWA Power.”
The collaboration aligns with the EU’s broader strategy to scale up hydrogen infrastructure and integrate alternative energy sources to reduce reliance on fossil fuels.
If successful, the project could position Saudi Arabia as a key supplier of green hydrogen to Europe, supporting the continent’s efforts to achieve carbon neutrality.
