
On January 27, 2025, ACWA Power, a Saudi-listed leader in renewable energy and hydrogen production, signed a memorandum of understanding (MoU) with Snam, a European infrastructure giant specializing in natural gas transportation and storage. This groundbreaking partnership is aimed at creating a dependable and cost-effective green hydrogen supply chain from Saudi Arabia to Europe. By integrating their expertise, the two companies are addressing the critical need for scalable, renewable energy sources to meet global decarbonization goals.
The collaboration will explore opportunities for joint investments and innovative solutions, with a focus on establishing the South H2 Corridor, a 3,300-kilometer hydrogen pipeline connecting North Africa, Italy, Austria, and Germany. This corridor is designed to supply competitive green hydrogen to key demand centers in Europe.
Additionally, the partnership includes evaluating the development of an ammonia import terminal in Italy. This terminal will serve as a vital link in the supply chain, enabling green ammonia produced in Saudi Arabia to be efficiently converted back to hydrogen for European markets.
This alliance is a significant step forward for the global hydrogen market. Europe’s ambitious Net Zero targets require an accelerated shift to renewable energy, and green hydrogen stands out as a cornerstone of this transformation. With its capacity to decarbonize sectors like heavy industry, transportation, and power generation, green hydrogen is set to play a pivotal role in reducing carbon emissions. The partnership between ACWA Power and Snam also enhances energy security for Europe by establishing a diverse, reliable supply chain that reduces dependency on traditional fossil fuels.
ACWA Power’s NEOM Green Hydrogen Plant further underscores the scale and ambition of this initiative. Set to be the world’s largest green hydrogen production facility, the plant will produce up to 600 tonnes of carbon-free hydrogen daily by the end of 2026. This project positions Saudi Arabia as a global leader in clean energy exports, driving innovation and fostering international collaboration to address climate challenges.
This partnership is is a strong indicator of progress for the hydrogen market. By leveraging shared expertise and resources, ACWA Power and Snam are paving the way for an energy transition that balances innovation, sustainability, and economic growth. The establishment of a robust green hydrogen supply chain not only supports Europe’s clean energy goals but also strengthens global efforts to combat climate change.
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