Germany and Saudi Arabia sign green hydrogen agreement

The Saudi and German governments have signed an agreement to cooperate in the emerging push for green hydrogen. The memorandum of understanding (MoU) was signed online by Saudi Arabia’s energy minister Prince Abdul Aziz bin Salman and Germany’s minister for economics and energy Peter Altmaier.

 

The Saudi and German governments have signed an agreement to cooperate in the emerging push for green hydrogen.

The memorandum of understanding (MoU) was signed online by Saudi Arabia’s energy minister Prince Abdul Aziz bin Salman and Germany’s minister for economics and energy Peter Altmaier.

The agreement acknowledges that both countries have a shared objective to create an environment for sustainable economic and ecologic growth while working together to meet the targets of the Paris Climate Accord to reduce carbon emissions.

“The potential of hydrogen has always been there, but now it is entering the mainstream of strategic energy thinking. As countries work jointly to address climate change, we affirm our commitment to lead the response in managing emissions, while continuing our socio-economic development. Our commitment to tackle climate change is firm, a commitment I know Germany shares,” said Prince Abdul Aziz following the signing.

“It is also a compelling investment proposition, with huge investment opportunities in hydrogen over the coming decades.”

Green hydrogen has emerged as a key priority for Saudi Arabia’s energy and economic diversification objectives set out in its Vision 2030 strategy.

In 2020, US-based Air Products and the local Acwa Power signed a  to develop an MoU to develop a $5bn hydrogen-based ammonia plant in Saudi Arabia.

The $5bn hydrogen-based plant will be located at the planned $500bn Neom development on the Red Sea Coast of the kingdom, one of the kingdom’s Public Investment Fund (PIF’s) key megaprojects planned to diversify the country’s economy away from a dependence on oil.

The project will be powered by more than 4GW of renewable energy, and will be able to produce 1.2 million tonnes per year of ammonia. The plant will produce 650 tonnes of hydrogen daily, Air Products revealed in a statement released on 7July.

Air Products will be the offtaker for the produced green ammonia, and will invest a further $2bn in distribution. Production from the facility is due to begin in 2025.

To find out more about the potential for clean hydrogen in the Middle East and an overview of the main technologies and schemes underway for green and blue hydrogen to date, listen to the recent clean hydrogen edition of Energy & Utilities Market Talk podcast with special guest Frank Wouters, vice president of business development, clean hydrogen, Worley.