SEFE Securing Energy for Europe has formalised a Memorandum of Understanding with ACWA Power, a Saudi-listed company recognised as the world’s largest private water desalination firm, a pioneer in green hydrogen, and a leader in the energy transition. This collaboration is set to establish a green hydrogen supply chain between Saudi Arabia and Europe, reinforcing energy cooperation between Saudi Arabia and Germany.
The agreement was signed in the presence of Saudi Arabia’s Minister of Energy, HRH Prince Abdulaziz bin Salman, and Germany’s federal minister of finance, Dr Jörg Kukies. Dr Egbert Laege, CEO of SEFE, and Marco Arcelli, CEO of ACWA Power, represented their respective companies in the signing ceremony.
Under the terms of the MoU, SEFE and ACWA Power will work together to create a hydrogen corridor between Saudi Arabia and Germany, with the initial objective of supplying 200,000 tonnes of green hydrogen per year by 2030. ACWA Power will lead as the developer, investor, and operator of green hydrogen and ammonia production facilities, while SEFE will act as a co-investor and the primary off-taker. Leveraging its position as one of Europe’s largest energy trading firms, SEFE will distribute the green hydrogen to German and European customers, supporting Germany’s commitment to decarbonisation and climate goals.
Dr Egbert Laege, CEO of SEFE, highlighted the significance of the partnership, stating: “This partnership perfectly embodies our dual ambition: securing Europe’s energy supply while driving the energy transition. By expanding our green hydrogen portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonisation.”
Marco Arcelli, CEO of ACWA Power, emphasised the strategic importance of the agreement, adding: “This MoU with SEFE marks a significant milestone in accelerating the green hydrogen economy in Europe. By combining ACWA Power’s proven expertise in green hydrogen production with SEFE’s extensive market knowledge, we are forming a strong partnership to deliver substantial quantities of green hydrogen to Germany and beyond, making a meaningful contribution to global decarbonisation efforts.”
SEFE, with an annual customer portfolio of 200 terawatt-hours (TWh/a), is strategically positioned to support the green hydrogen supply chain. The company is actively developing hydrogen transport and storage infrastructure in Germany, including the conversion of sections of its 4,100 km pipeline network for hydrogen transport through its subsidiary GASCADE under the FLOW project. Additionally, it is constructing the AquaDuctus offshore hydrogen pipeline in the North Sea and developing a large-scale hydrogen storage facility in Jemgum, which will have a capacity of up to 500 GWh.
The agreement further enhances ACWA Power’s rapidly expanding green hydrogen portfolio. The company is currently constructing 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. In addition, ACWA Power is progressing with its second green hydrogen project in Uzbekistan, with the first phase targeting 3,000 tonnes of green hydrogen production annually, followed by an expanded second phase. The company has also signed MoUs with Tunisia and Egypt to explore the development of green hydrogen projects for export to Europe via the SoutH2 Corridor.
This partnership marks a significant step towards accelerating the global transition to clean energy, reinforcing both SEFE’s and ACWA Power’s commitment to sustainable energy solutions.
For more information visit www.sefe.eu
