Saudi Arabia's private utility developer Acwa Power has signed an initial agreement with three Dutch companies to explore the establishment of a green hydrogen export corridor between Acwa’s production sites and the port of Amsterdam.
The pact signed at the Saudi-EU Investment Forum in Riyadh will explore incentive opportunities that could promote demand for green hydrogen and make it more affordable, Acwa Power said on Monday.
The three Dutch entities include a European seaport Port of Amsterdam, a midstream company that owns and operates over 5 million cubic metres of renewable fuels, crude oil, chemicals and petroleum products Zenith Energy Terminals, and GasLog, an international owner, operator and manager of LNG carriers.
“Together, we are not just shaping the commercial viability of emerging clean energy sectors like green hydrogen … we are also showcasing Saudi Arabia's role in driving the global energy transition in a collaborative and innovative manner,” Marco Arcelli, chief executive of Acwa Power, said.
The Saudi Arabia-listed company is currently developing various green hydrogen projects in several locations, including the $8.5 billion Neom green hydrogen project in the kingdom.
It is developing its second green hydrogen project in Uzbekistan, and is pursuing more projects and feasibility studies in different countries in the Middle East, Africa, and various other locations.
A part of the green hydrogen produced will be allocated for export, with a specific focus on the European market, Acwa Power said.
Hydrogen, which can be produced from renewable energy and natural gas, is widely tipped to become a critical fuel in future years as economies and industries transition to a low-carbon world.
It comes in several forms, including blue, green and grey. Blue and grey hydrogen are produced from natural gas while green hydrogen is created from splitting water molecules through electrolysis.
The Dutch government has announced that it would earmark €9 billion ($9.6 billion) for the development of green hydrogen production and distribution until 2030, of which €300 million is reserved for imports.
The Port of Amsterdam is a global energy hub that is prioritising the development of green hydrogen capabilities.
“With this MoU, the partners seek to make a significant contribution to the global energy transition, by focusing on the development of liquid hydrogen corridors that can supply the demand in our port and will use the port of Amsterdam as a gateway to the European market,” Dorine Bosman, chief investment officer at Port of Amsterdam, said.