ACWA Power’s memorandum of understanding with EnBW Energie Baden-Württemberg, Rostock Port, and VNG outlines a proposed green ammonia supply corridor from Saudi Arabia to northern Germany, positioning ammonia cracking as a gateway for large-scale hydrogen imports into Europe’s core gas network.
The agreement centers on ACWA’s planned green hydrogen and ammonia production hub in Yanbu, Saudi Arabia, with a targeted commercial operation date of 2030. Under the MoU, green ammonia produced at Yanbu would be shipped to the Port of Rostock, where VNG intends to crack it back into hydrogen for injection into Germany’s national hydrogen core network. EnBW would act as offtaker and manage commercial and logistical delivery, while Rostock Port would provide the physical import interface.
The structure reflects a broader shift in European hydrogen planning. Germany has acknowledged that domestic electrolysis alone will not meet projected hydrogen demand, particularly for hard-to-abate sectors such as steel, chemicals, and refining. Converting imported ammonia back into hydrogen is increasingly viewed as a practical workaround, despite the efficiency losses associated with synthesis, transport, and cracking. The proposed Rostock cracker, still under development, would become a critical node in translating overseas production into usable molecules for German industry.
ACWA’s role underscores the growing importance of Middle Eastern producers in Europe’s hydrogen supply chain. The company is already a leading developer of desalination and renewable-linked energy projects and was among the first movers into green hydrogen at scale. In Yanbu, ACWA is leading development of the hydrogen and ammonia facilities with support from EnBW, with front-end engineering design for the process plants scheduled for completion by mid-2026. While commercial operations are targeted for 2030, the long lead times highlight the capital intensity and execution risk inherent in cross-continental hydrogen trade.
From Germany’s perspective, the corridor offers both opportunity and exposure. Importing green ammonia from Saudi Arabia could diversify supply and reduce dependence on fossil fuel imports, but it also embeds long-term reliance on overseas production and maritime logistics. VNG’s plan to inject cracked hydrogen into the national core network aligns with Germany’s hydrogen backbone strategy, yet the economics will depend heavily on future hydrogen demand, carbon pricing trajectories, and the cost competitiveness of imported molecules versus domestic alternatives.
The involvement of EnBW as an offtaker signals an attempt to anchor the corridor in utility-scale demand rather than speculative volumes. EnBW’s responsibilities extend beyond procurement to managing transport and delivery to Rostock, effectively bridging production and consumption. This integration may mitigate some commercial risk, but it does not eliminate uncertainty around regulatory treatment of imported hydrogen, certification of green credentials, and network access rules.
ACWA has also indicated it is evaluating participation in the co-development and potential co-investment in ammonia infrastructure in Germany. Such a move would mark a deeper form of vertical integration, blurring the line between exporter and downstream infrastructure owner. While this could strengthen supply security, it also raises questions about foreign ownership of strategic energy assets, a topic that remains politically sensitive in parts of Europe.
Statements from executives on both sides emphasize collaboration and system-level solutions. ACWA’s chief executive Marco Arcelli framed the corridor as a means to deliver scale for Europe’s hydrogen needs while reinforcing Saudi Arabia’s position as a supplier of green molecules. EnBW CEO Dr. Georg Stamatelopoulos highlighted international partnerships as essential for affordability and speed, implicitly acknowledging that domestic-only pathways may fall short of Germany’s decarbonization timelines.
Rostock Port’s role illustrates how ports are repositioning themselves as energy transition infrastructure rather than purely logistics hubs. By hosting ammonia imports and potentially hydrogen conversion facilities, Rostock aims to become a focal point for Germany’s northern hydrogen supply. Whether local acceptance, permitting timelines, and grid integration can keep pace remains an open question.
