With a customer portfolio of 200TWh/year, SEFE will serve as a co-investor and prime off-taker of the deal and is likely to primarily distribute the hydrogen throughout Germany and into Europe via upcoming pipeline developments.

Read more: Germany’s 9,000km hydrogen gamble: Will the Wasserstoff-Kernnetz pay off?

Saudi-backed ACWA Power will act as the lead developer, investor and operator of green hydrogen and ammonia production assets.

However, it hasn’t been revealed where exactly the 200,000 tonnes of green hydrogen will be specifically supplied from.

The NEOM Green Hydrogen Project, the world’s largest green hydrogen development, is a cornerstone of its portfolio and is being developed in partnership with NEOM and Air Products. Although H2 View understands that all hydrogen produced at the site has already been contracted for use.

Marco Arcelli, CEO of ACWA Power, claimed the Memorandum of Understanding supports Saudi Arabia’s goal of becoming “one of the world’s largest producers and exporters of hydrogen.”

“By combining ACWA Power’s proven expertise in green hydrogen production with SEFE’s extensive market knowledge, we are forming a strong partnership to deliver substantial quantities of green hydrogen to Germany and beyond,” ACWA Power’s CEO added.

“This partnership perfectly embodies our dual ambition: securing Europe’s energy supply while driving the energy transition,” explained Dr. Egbert Laege, CEO of SEFE.

“By expanding our green hydrogen portfolio and investing in local production, we are equipping ourselves with solutions to help our customers achieve decarbonisation.”

SEFE’s subsidiary Gascade is planning to repurpose a 4,100km pipeline network in Germany to carry hydrogen.