SEFE Securing Energy for Europe has signed a Memorandum of Understanding (MoU) with ACWA Power, a global leader in green hydrogen production and water desalination, to develop a major hydrogen supply route between Saudi Arabia and Germany. The agreement marks a significant milestone in strengthening energy cooperation between the two nations and advancing Europe’s green hydrogen economy.
The MoU was formalized in the presence of HRH Prince Abdulaziz bin Salman, Saudi Minister of Energy, and Dr. Jörg Kukies, German Federal Minister of Finance, with Dr. Egbert Laege, CEO of SEFE, and Marco Arcelli, CEO of ACWA Power, signing on behalf of their respective companies.
Building a Hydrogen Bridge Between Saudi Arabia and Germany
Under this agreement:
- SEFE and ACWA Power will establish a hydrogen supply corridor, initially targeting 200,000 tonnes of green hydrogen per year by 2030.
- ACWA Power will act as the lead developer, investor, and operator of green hydrogen and green ammonia production facilities.
- SEFE will serve as a co-investor and primary off-taker, leveraging its position as one of Europe’s largest energy traders to distribute hydrogen across Germany and Europe.
- The partnership aligns with Germany’s climate goals, supporting its decarbonization efforts through increased green hydrogen adoption.
Leadership Comments
Dr. Egbert Laege, CEO of SEFE, highlighted the strategic importance of the agreement:
“This partnership embodies our dual ambition: securing Europe’s energy supply while driving the energy transition. Expanding our green hydrogen portfolio and investing in local production equips us with the solutions our customers need to achieve decarbonization.”
Marco Arcelli, CEO of ACWA Power, emphasized the project’s role in accelerating the hydrogen economy:
“This MoU with SEFE is a major step toward delivering substantial quantities of green hydrogen to Germany and beyond. By combining ACWA Power’s expertise in hydrogen production with SEFE’s extensive market knowledge, we are making a meaningful contribution to global decarbonization.”
Strengthening Europe’s Hydrogen Infrastructure
With a customer portfolio of 200 TWh annually, SEFE is actively developing hydrogen transport and storage infrastructure in Germany, including:
- GASCADE’s FLOW Project – converting 4,100 km of pipeline network for hydrogen transport.
- AquaDuctus – a new offshore hydrogen pipeline in the North Sea.
- Jemgum Hydrogen Storage Facility – a large-scale site capable of storing 500 GWh of hydrogen.
ACWA Power’s Expanding Green Hydrogen Portfolio
ACWA Power is rapidly scaling its green hydrogen production capabilities, with key projects including:
- NEOM Green Hydrogen Project (Saudi Arabia) – the world’s first utility-scale green hydrogen plant, producing 1.2 million tonnes of green ammonia annually.
- Uzbekistan Green Hydrogen Project – targeting 3,000 tonnes of hydrogen annually in its first phase, with expansion planned.
- MoUs with Tunisia and Egypt – exploring hydrogen exports to Europe via the SoutH2 Corridor.
Accelerating the Green Hydrogen Transition
This agreement positions Saudi Arabia as a key hydrogen supplier to Europe and reinforces Germany’s commitment to decarbonization. With SEFE and ACWA Power combining expertise in hydrogen production, transport, and distribution, the partnership will play a crucial role in shaping the future of clean energy in Europe and beyond.