A newly inked memorandum of understanding (MOU) could see Acwa supply green ammonia from its Yanbu project to EnBW Energie Baden-Württemberg (ENBW), with VNG supporting European imports.

Under the plans, ammonia would be cracked into hydrogen at Germany’s Port of Rostock by VNG before being distributed through the country’s 9,000km hydrogen core network.

In a statement, the company said it is “evaluating the potential for its participation in the co-development and possible co-investment in ammonia infrastructure in Germany.”

The Yanbu green hydrogen project, planned for commercial operation in 2030, will combine 10GW of wind and solar power, and 4.4GW of electrolysis to produce 2.5 million tonnes of green ammonia per year.

It builds off an earlier MOU with ENBW, TotalEnergies, and more to assess the demand for and feasibility of large-scale green ammonia exports.

Acwa CEO, Marco Arcelli, stressed the partnership’s “pivotal” importance for creating a Saudi-Germany green ammonia corridor.

Saudi Arabia is aiming to become a leading global exporter of alternative fuels like hydrogen and ammonia. It has eyes on providing 10% global green hydrogen demand by 2030.

Germany also foresees up to 70% of its 2030 green hydrogen demand being met through imports due to the country’s limited land availability of high power prices.

However, questions linger about the Kingdom’s export goals. Air Products, the one-third owner and sole offtaker of green ammonia for the 2.2GW Neom green hydrogen project – in which Acwa holds a one-third stake – has shifted its plans amid low European demand.

With the project set to begin producing 1.2 million tonnes of green ammonia per year in 2027, Air Products does not have a green hydrogen customer until 2030, when a deal with TotalEnergies – representing 45% of Neom’s output – enters force.

Now it is exploring a deal with fertiliser major Yara, which would see Yara offtake green ammonia and sell it on a commission basis.