Saudi Arabia to Supply 200,000 Tons of Green Hydrogen Annually to Germany

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Saudi Arabia to Supply 200,000 Tons of Green Hydrogen Annually to Germany

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Hydrogen molecule (© Shutterstock/Corona Borealis Studio)
Hydrogen molecule (© Shutterstock/Corona Borealis Studio)

Germany's state-owned energy company, Securing Energy for Europe (SEFE) signed a memorandum of understanding (MoU) with Saudi Arabia's ACWA Power to supply green hydrogen to the European market.

The agreement calls for 200,000 tons of hydrogen produced with wind and solar power to be shipped to Europe annually as ammonia starting in 2030, SEFE announced.

The hydrogen has an energy content of nearly 6.7 terawatt-hours. The German government's hydrogen strategy envisions hydrogen imports between 45 and 90 terawatt-hours in 2030.

Germany views hydrogen as crucial to its energy needs, alongside electricity generated from renewable sources. The gas will be used for steel production and to generate electricity when wind and solar power are insufficient.

ACWA Power aims to become a leading developer, investor, and operator of green hydrogen and green ammonia production facilities, SEFE said.

"SEFE will serve as a co-investor and the primary off-taker, leveraging its position as one of Europe's largest energy trading companies to market the green hydrogen to its German and European customers," according to the agreement signed in Riyadh. Saudi Energy Minister Prince Abdulaziz bin Salman and German Finance Minister Jörg Kukies were present.

SEFE was previously Gazprom Germania, a subsidiary of Russia's Gazprom, and was taken over after Russia's invasion of Ukraine.

The company previously announced a hydrogen import agreement with Brazil's Elektrobras, also for 200,000 tons annually from 2030. It has also reached an agreement with Norway's Equinor on low-carbon hydrogen for the period 2029 to 2060.

Germany aims to import hydrogen with an energy equivalent of between 360 and 500 terawatt-hours by 2045, along with 200 terawatt-hours of hydrogen compounds.