ACWA Power has signed a Memorandum of Understanding (MoU) with Zenith Energy Terminals, GasLog, and Port of Amsterdam to explore the viability for a green hydrogen export corridor between ACWA Power’s global hydrogen production sites and the port of Amsterdam.
The companies exchanged the MoU during the Saudi-EU Investment Forum, which took place in Riyadh on October 23. This MoU builds upon a previous agreement signed between Saudi Arabia and the Netherlands, aiming to enhance cooperation in various sectors such as clean hydrogen, marine transport technologies, standards, certification, and the establishment of efficient international supply chains connecting both countries.
ACWA Power aims to become a large global producer of green hydrogen and is currently developing numerous projects in several locations, including the $ 8.5 billion NEOM Green Hydrogen Project in Saudi Arabia, which is the world’s largest utility-scale commercial facility of its kind, powered entirely by renewable energy. ACWA Power is developing its second green hydrogen project in Uzbekistan and is pursuing further projects and feasibility studies in different countries in the Middle East, Africa, and various other locations. Part of the green hydrogen produced will be allocated for export, with a specific focus on the European market.
Emphasizing the value of pioneering a greener future, Marco Arcelli, CEO of ACWA Power, said: “This collaboration is more than just a stepping stone – it is a leap towards a new horizon. As a first mover in green hydrogen, ACWA Power is not just unlocking the potential of green hydrogen, the fuel of the future, but we are also exporting our expertise and commitment to a global audience. Our collaboration with GasLog, Zenith Energy Terminals, and Port of Amsterdam signifies our dedication to clean energy leadership on an international stage.”
“Together, we’re not just shaping the commercial viability of emerging clean energy sectors like green hydrogen; we’re also showcasing Saudi Arabia’s role in driving the global energy transition in a collaborative and innovative manner,” Arcelli, further commented.
As part of the MoU, ACWA Power, Zenith Energy Terminals and GasLog will conduct a detailed feasibility study to establish a trade corridor for liquified green hydrogen between ACWA Power’s production sites and the port of Amsterdam. Based on the outcomes of the study, the stakeholders may subsequently engage in a Joint Development Agreement (JDA) to define roles and responsibilities, while also engaging with prospective offtakers within the vicinity of the port of Amsterdam and its hinterland.
The parties will also investigate suitable incentive opportunities that could promote demand for green hydrogen and make it more affordable. The Dutch government has previously stated that it would earmark EUR9 billion for the development of green hydrogen production and distribution until 2030, of which EUR300 million is reserved for imports.