Saudi developer of green hydrogen projects ACWA Power has signed a memorandum of understanding (MoU) with GasLog, Zenith Energy Terminals, and Port of Amsterdam to explore the viability of developing a green hydrogen export corridor between its global hydrogen production sites and the port of Amsterdam.
The MoU was signed during the Saudi-EU Investment Forum, which took place in Riyadh on October 23.
It 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.
The parties agreed to 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, and, 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 off-takers 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 €9 billion for developing green hydrogen production and distribution until 2030, of which €300 million is reserved for imports.
ACWA Power is currently developing numerous projects in several locations, including the $8.5 billion NEOM Green Hydrogen Project in Saudi Arabia as well as its second green hydrogen project in Uzbekistan, while also pursuing further projects and feasibility studies in different countries in the Middle East, Africa, and various other locations.
The company noted that part of the green hydrogen produced will be allocated for export, with a specific focus on the European market.
Zenith Energy Terminals is developing an open-access liquid hydrogen import facility in Amsterdam, focusing on providing hydrogen producers access to Dutch and European hydrogen markets. As explained, this infrastructure will offer hydrogen producers, like ACWA Power, the option to ‘regasify’ their liquid hydrogen for delivery to HyNetwork, distribution within the port and Dutch hinterland, and the export of liquid hydrogen via barge and truck to inland off-takers.
Additionally, Zenith Energy Terminals is working with GasLog to develop specialized vessels capable of transporting liquid hydrogen from ACWA Power’s hydrogen production sites to the port of Amsterdam.
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.”
“We believe green hydrogen will shape the world’s ability to address the global decarbonization challenge, but it will take a concerted and cross-border effort to realize its potential. The government-to-government agreement signed between the Netherlands and Saudi Arabia is a good example of such an effort and has laid the foundation for the MoU we sign today,” Dorine Bosman, Chief Investment Officer at Port of Amsterdam, stated.
“The NEOM Project underlines that ACWA Power is in the vanguard when it comes to production of green hydrogen. 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.”