ACWA Power has signed an agreement with Securing Energy for Europe (Sefe) to supply 200,000 tonnes of green hydrogen annually by 2030. ACWA Power will lead the development and operation of production assets, while Sefe will co-invest and market the hydrogen in Germany and Europe.
CEO Marco Arcelli stated the deal marks a major step for Saudi Arabia in becoming a top global hydrogen producer and advancing Europe’s green hydrogen economy.
Hydrogen is a clean energy source that only emits water vapor when burned, leaving no pollutants in the air, unlike coal and oil. While hydrogen production requires significant energy, using renewable energy for production eliminates the associated emissions, creating “green” hydrogen.
ACWA Power is expanding its green hydrogen portfolio. Construction is underway for the Neom Green Hydrogen Project, a joint venture with Air Products and Neom, which aims to be the world’s first utility-scale green hydrogen plant, producing 1.2 million tonnes of green ammonia annually.
Additionally, ACWA Power is progressing on its second green hydrogen project in Uzbekistan, with the first phase set to produce 3,000 tonnes of green hydrogen annually.On Monday, ACWA Power shares were down around 2.5%, trading at SAR394.
Green hydrogen is produced through carbon-neutral water electrolysis, while turquoise hydrogen comes from methane pyrolysis of natural gas.
Blue hydrogen is made via steam reforming of natural gas, and grey hydrogen is produced through steam reforming of fossil fuels like coal or natural gas.
Other types include red, pink, and violet hydrogen, which use nuclear power for electrolysis.
Yellow hydrogen from a mix of renewables and fossil fuels, white hydrogen as a waste byproduct, and brown hydrogen from coal.
