ACWA Power to expand green hydrogen imports for EU

ACWA Power and Snam announce signing of MoU with aims of expanding green hydrogen deliveries from Saudi Arabia to Europe.

Saudi Arabia’s ACWA Power, a private water salination firm, has announced it has signed a memorandum of understanding (MoU) with EU natural gas operator Snam to explore the possibility of establishing an international supply chain of green hydrogen to Europe.

Snam, which is based in Italy, specialises in natural gas transportation, storage and regasification. It recently unveiled plans for building a €12.4 billion pan-European multi-molecule infrastructure with the ambition of advancing energy security and the transition to Net Zero.

Marco Arcelli, Chief Executive Officer of ACWA Power, said: “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.”

The two firms have also said they will evaluate the development of an ammonia import terminal to facilitate the delivery of green hydrogen from the Saudi Arabia to Italy, Austria, and Germany, through the SoutH2 Corridor.

Part of the European Hydrogen Backbone, the SoutH2 Corridor is a joint project between Snam, TAG, Gas Connect Austria, and Bayernets. It is expected to be fully operational as early as 2030, with a hydrogen import capacity of 4 Mtpa from North Africa, potentially delivering more than 40% of the REPowerEU import target.

Stefano Venier, 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.”

Snam’s announced €12.4 billion investments fall under its 2025-2029 Strategic Plan, which will see €8 billion allocated to transport-related projects, including the completion of the Adriatic Line and the replacement of about 850 km of pipelines with hydrogen-ready standards.