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Acwa Power targets green hydrogen link to Europe

Acwa Power and Snam will evaluate the development of an ammonia import terminal in Italy Snam
Acwa Power and Snam will evaluate the development of an ammonia import terminal in Italy

The Saudi renewables company Acwa Power and the Italian natural gas transport operator Snam are to jointly explore investments to set up a green hydrogen supply chain.

The collaboration aims to establish a “dependable and cost-effective” supply of green hydrogen from Saudi Arabia to Europe.

The two companies will also evaluate the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the SoutH2 corridor.

The SoutH2 Corridor project is a proposed 3,300km hydrogen pipeline connecting North Africa, Italy, Austria, and Germany. 

Marco Arcelli, CEO of Acwa Power, said the partnership will focus on new, low-carbon molecules to decarbonise the power sector, as emissions are already down by 40 percent in the past two decades.  

Stefano Venier, CEO of Snam, said the European Union’s ambitious decarbonisation targets needed decisive action across all manufacturing sectors through the use of all available technologies.

In December 2023, Acwa Power said it would develop the largest green hydrogen facility in Indonesia, valued at $1 billion, with commercial production due to start in 2026.

The Saudi-listed company, backed by the Public Investment Fund, is expanding its green hydrogen portfolio, with work well under way at the 1.2 million tonne-per-year Neom Green Hydrogen Project in Saudi Arabia.

The project is planned for completion in late 2026.