JEDDAH: Saudi Arabia and Italy have signed an agreement to boost energy cooperation, including a possible supply to Europe of green hydrogen made in the Kingdom.
The Saudi Minister of Energy Prince Abdulaziz bin Salman met with Italy’s Minister of Energy and Environment Gilberto Pichetto Fratinon on Jan. 14 to sign the memorandum of understanding, which covers collaboration in innovation and technology, such as hydrogen project development, climate change mitigation solutions, and the circular carbon economy, including carbon capture, utilization, and storage.
The deal comes as Saudi Arabia seeks to boost its green power credentials, with a facility at NEOM set to become the world’s largest utility-scale, commercially-based hydrogen plant powered entirely by renewable energy.
According to Reuters, the Italian minister stated that his country could serve as a gateway into Europe for renewable hydrogen and ammonia produced in Saudi Arabia, highlighting it would be “much closer, more competitive and strategic than other alternatives in the North Sea.”
The agreement also highlights the importance of digital transformation, cybersecurity, and artificial intelligence in the energy sector while promoting joint initiatives to support engineering and construction projects in alignment with the Paris Agreement and the 2030 Sustainable Development Agenda.
The ministers addressed key topics such as reducing methane emissions, energy storage solutions, and using traditional and transitional fuels, including oil, gas, and petroleum.
The discussions also focused on enhancing the stability and reliability of oil and natural gas markets, reducing volatility, and strengthening energy supply security and supply chains, according to a press release from the Saudi Ministry of Energy.
The Saudi ministry’s release indicated that cooperation would include developing qualitative partnerships on products and services related to all sectors of energy supply chains and their technologies. It added that the cooperation will also consider creating and using sustainable, polymeric, and innovative materials in construction and other sectors.
Scheduled for commissioning in 2026, the NEOM Green Hydrogen Project will produce 600 tonnes of clean hydrogen daily through electrolysis using thyssenkrupp technology, nitrogen through air separation powered by Air Products, and up to 1.2 million tonnes of green ammonia annually. Upon completion, the facility will offset 5 million metric tonnes of carbon emissions annually.
A collaboration between NEOM, Air Products, and ACWA Power, the joint venture will leverage cutting-edge technologies to integrate approximately 4 gigawatts of renewable energy from onshore solar, wind, and storage.
In July, Saudi Aramco signed agreements to acquire a 50 percent stake in the blue hydrogen industrial gases business of Air Products Qudra, reinforcing the Kingdom’s commitment to becoming a global leader in hydrogen production.
