Saudi energy giant ACWA Power and Germany’s SEFE Securing Energy for Europe have signed a deal to establish a hydrogen supply corridor between Saudi Arabia and Germany, targeting an annual supply of 200,000 tonnes of green hydrogen by 2030.
The agreement, signed in the presence of Saudi Energy Minister Prince Abdulaziz bin Salman and German Finance Minister Dr. Jörg Kukies, is a major step in boosting energy ties between the two nations and advancing Europe’s hydrogen economy.
Under the Memorandum of Understanding (MoU), ACWA Power will act as the lead developer, investor, and operator of green hydrogen and green ammonia production facilities, while SEFE, a German state-owned energy firm, will serve as a co-investor and primary offtaker, leveraging its market reach across Germany and Europe.
“This partnership strengthens Saudi Arabia’s ambition to become a global leader in hydrogen production while supporting Europe’s decarbonisation goals,” said Marco Arcelli, Chief Executive of ACWA Power.
“By combining our expertise in large-scale green hydrogen production with SEFE’s deep market knowledge, we are creating a vital energy bridge that supports European energy security and industrial competitiveness.”
SEFE CEO Dr. Egbert Laege described the deal as a pivotal step in securing Europe’s energy supply while driving the transition to renewables. “By expanding our green hydrogen portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonisation,” Laege said.
Germany has identified green hydrogen as a key pillar in its energy transition strategy, seeking reliable suppliers to reduce dependence on fossil fuels and meet stringent climate targets.
The Saudi-German collaboration aligns with Germany’s National Hydrogen Strategy, which aims to import a significant share of its hydrogen demand from international partners.
SEFE is positioning itself as a key player in hydrogen infrastructure development in Germany. Through its subsidiary GASCADE, it is repurposing sections of its 4,100-kilometre pipeline network for hydrogen transport under the FLOW project, alongside developing the AquaDuctus offshore hydrogen pipeline in the North Sea and a large-scale hydrogen storage facility in Jemgum.
For ACWA Power, the agreement strengthens its rapidly expanding green hydrogen portfolio. The company is already leading the development of the NEOM Green Hydrogen Project—a joint venture with Air Products and NEOM—which will be the world’s first large-scale green hydrogen plant, producing 1.2 million tonnes of green ammonia annually. Additionally, ACWA Power is advancing projects in Uzbekistan, Egypt, and Tunisia, with a vision to supply hydrogen to Europe via the planned SoutH2 Corridor.
Saudi Arabia has set its sights on becoming one of the world’s largest producers and exporters of hydrogen, leveraging its abundant renewable energy resources and strategic location. Saudi-German energy cooperation is a key part of this ambition, with both countries aiming to foster economic growth, job creation, and environmental sustainability while meeting the Paris Agreement’s climate targets.
