Saudi Arabia’s ACWA Power has inked a series of agreements aimed at transforming the Kingdom into a central node for renewable energy and green hydrogen exports to Europe.
Formalized during the Renewable Energy and Green Hydrogen Export Workshop in Riyadh, the deals lay critical groundwork for a long-distance energy corridor linking Saudi Arabia to European demand centres through high-voltage transmission and clean fuel logistics.
The workshop, held under the auspices of Saudi Arabia’s Ministry of Energy and attended by senior officials from Germany, France, Greece, and Italy, underscores the strategic weight of the India-Middle East-Europe Economic Corridor (IMEC) initiative. As supply chains in fossil energy face mounting scrutiny, these cross-border collaborations are intended to accelerate the flow of renewable electricity and green hydrogen—technologies that have yet to scale at pace in international trade.
At the centre of the announcements is a multi-party Memorandum of Understanding (MoU) between ACWA Power and four European firms: TotalEnergies Renewables SAS (France), Edison S.p.A. and Zhero Europe B.V. (Italy), and EnBW (Germany). The agreement will initiate joint assessments on market demand and the development of large-scale solar and wind power in Saudi Arabia, with a long-term view toward energy export to Europe via subsea HVDC infrastructure. While no project sizes or investment volumes were disclosed, the companies signalled strong alignment on future capacity build-out and delivery to high-demand centres.
Cross-border energy transport is notoriously capital-intensive and technically demanding, making the second pillar of ACWA Power’s strategy—transmission infrastructure—a central focus. Separate MoUs were signed with engineering and cable providers such as GE Vernova, Siemens Energy (Germany), Hitachi (France), CESI (Italy), and Prysmian (Italy), all of whom are expected to contribute to the development of high-efficiency HVDC links. These systems are critical for long-haul electricity transport due to their lower energy losses over distance, but remain cost-prohibitive without large-scale coordination and regulatory harmonisation.
Of particular significance is the Yanbu Green Hydrogen Hub, where ACWA Power and EnBW agreed to jointly develop the first phase of the complex, scheduled to be operational by 2030. With integrated solar and wind farms, desalination units, electrolysis facilities, ammonia synthesis, and a dedicated export terminal, the hub is intended to be a full-cycle production site for green fuels. If executed as envisioned, it would represent one of the largest green hydrogen projects globally and a major pivot point in establishing global trade in low-emission hydrogen derivatives.
Yet the challenges are non-trivial. Despite the strategic location and comparative advantage in renewable resource intensity, the cost competitiveness of Saudi-produced green hydrogen remains tied to electrolyser efficiency, water sourcing, and downstream conversion logistics. Furthermore, the commercial readiness of hydrogen transport to Europe—via ammonia carriers or pipeline networks—continues to face hurdles in infrastructure financing and certification alignment.
Saudi Arabia’s push to integrate into IMEC and Vision 2030’s clean energy framework is not without precedent, but the scope and complexity of these agreements mark a sharp escalation. Where previous projects emphasised domestic transition, ACWA Power’s current strategy positions the Kingdom as an exporter of clean electrons and molecules, aiming to supply a continent that is rapidly decarbonising but lacks sufficient renewable capacity of its own.
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