ACWA Power (Riyadh, Saudi Arabia) has signed a memorandum of understanding (MoU) with Snam S.p.A. (San Donato Milanese, Italy) to explore collaboration and joint investments to establish a supply chain of green hydrogen to Europe.
Snam, a leading European operator in natural gas transportation, storage, and regasification, aims at building a pan-European multi-molecule infrastructure, advancing energy security and the transition to Net Zero. ACWA Power serves as a developer, investor, and operator of green hydrogen and green ammonia production facilities in the Kingdom of Saudi Arabia.
This partnership will involve exploring potential collaboration and joint investments aimed at establishing an international supply chain for a dependable and cost-effective supply of green hydrogen from Saudi Arabia to Europe and evaluating the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the SoutH2 Corridor, the 3,300-km long corridor reaching central Europe through Italy, Austria and Germany.
Commenting on the MoU, Marco Arcelli, Chief Executive Officer of ACWA Power, said: “We are excited to join forces with Snam to drive significant advancements in the green hydrogen sector. 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 decarbonize our sectors. Bringing our expertise together will help accelerate this process”.
From his side, Stefano Venier, the Chief Executive Officer of Snam, stated: “The EU’s ambitious decarbonization targets need decisive action across all manufacturing sectors, utilizing all available technologies in a practical, efficient and accelerated manner. Hydrogen plays a key-role here, and we are glad to pursue development opportunities in this field also through agreements like the one we signed with ACWA Power: the development of the ammonia import terminal is synergic with that of the SoutH2 Corridor”.