ACWA Power and Snam to collaborate on green hydrogen

Saudi-listed ACWA Power has signed a memorandum of understanding (MoU) with Snam relating to the establishment of a supply chain of green hydrogen to Europe

This partnership will involve exploring potential collaboration and joint investments aimed at establishing an international supply chain for a dependable and cost-effective supply of green hydrogen from Saudi Arabia to Europe and evaluating the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the South H2 Corridor, a 3,300 km hydrogen pipeline connecting North Africa, Italy, Austria and Germany to supply competitive renewable hydrogen to European demand clusters.

Snam, a leading European operator in natural gas transportation, storage, and regasification, aims at building a pan-European multi-molecule infrastructure, advancing energy security and the transition to Net Zero. ACWA Power is a leading developer, investor, and operator of green hydrogen and green ammonia production facilities in the Kingdom of Saudi Arabia. As a partner in the NEOM Green Hydrogen Company (NGHC), ACWA Power is setting up a US$8.5bn mega plant at NEOM to produce green hydrogen at scale for global export in the form of green ammonia. This is set to be the world’s largest green hydrogen production facility, with a production capacity of up to 600 tonnes of carbon-free hydrogen daily by the end of 2026.

“We are excited to join forces with Snam to drive significant advancements in the green hydrogen sector. With power sector emissions already down 40% compared to 20 years ago, we now need to focus our collective efforts on new, low-carbon molecules to decarbonise our sectors. Bringing our expertise together will help accelerate this process,” said Marco Arcelli, chief executive officer of ACWA Power.

Stefano Venier, the chief executive officer of Snam, added, “The EU’s ambitious decarbonisation targets need decisive action across all manufacturing sectors, utilising all available technologies in a practical, efficient and accelerated manner. Hydrogen plays a key role here, and we are glad to pursue development opportunities in this field also through agreements like the one we signed with ACWA Power: the development of the ammonia import terminal is synergic with that of the South H2 Corridor.”