Saudi Arabia, Germany ink 200k-tonnes green hydrogen export deal

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Updated 03 February 2025
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Saudi Arabia, Germany ink 200k-tonnes green hydrogen export deal

  • Deal was signed during a meeting between Minister of Energy Prince Abdulaziz bin Salman and German Minister of Finance Jorg Kukies
  • Kukies also met Minister of Finance Mohammed Al-Jadaan following a Saudi–German roundtable meeting in Riyadh

RIYADH: Saudi Arabia and Germany have signed an agreement to export 200k tonnes of green hydrogen annually from the Kingdom to Europe by 2030, strengthening their clean energy partnership.

The memorandum of understanding was inked between ACWA Power and the German energy trading company SEFE and will see the Saudi company serve as the developer, investor, and primary operator of green hydrogen and ammonia production assets.

SEFE will act as a co-investor and key buyer and will be responsible for marketing the green hydrogen to its customers in Germany and Europe.

The deal was signed during a meeting between the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman and German Minister of Finance Jorg Kukies. 

The agreement is part of the ongoing Saudi-German Energy Dialogue, and focuses on green hydrogen production, processing, and transportation.

This aligns with Saudi Arabia’s strategic push for clean energy, reinforcing the initiative’s goal to advance collaboration in renewables and hydrogen technologies while solidifying the Kingdom’s role in the global energy transition.

During the meeting, both sides explored areas of mutual interest in the energy sector, particularly clean hydrogen initiatives, building on the MoU signed between the two nations in 2021. This marks a continuation of Saudi Arabia and Germany’s growing energy cooperation following the agreement.

“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,” Marco Arcelli, CEO of ACWA Power, said in a statement.

He added: “This is contributing to global decarbonization efforts, European security of supply by offsetting gas demand, and industrial demand preservation in Europe by making available the most competitive green energy.”

Egbert Laege, CEO of SEFE, described the partnership as perfectly embodying the firm’s dual ambition of securing Europe’s energy supply while driving the energy transition.

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

Saudi Arabia is ramping up efforts to establish itself as a global leader in green hydrogen production and exports by leveraging its vast renewable energy resources, particularly solar and wind, which, due to its high solar irradiance, enable more efficient and cost-effective hydrogen production than countries like Germany.

Round table talks

Aside from the MoU signing, the German finance minister met with the Kingdom’s Minister of Finance Mohammed Al-Jadaan following a Saudi–German roundtable meeting in Riyadh.

In a post on X, Al-Jadaan said the two discussed “the most prominent global financial and economic developments.”

The roundtable was attended by a number of the largest private sector firms from both nations.

Saudi Arabia’s Ministry of Investment, National Center for Privatization, and the Financial Sector Development Program reviewed the investment opportunities available for German companies.

The roundtable also saw a focus on how human capital expertise in both conventional and renewable energy, and the industrial and manufacturing strength of Germany, are part of the ongoing relationship that contributes to achieving the goals of Vision 2030.

The German finance minister also held talks with the Saudi Minister of Economy and Planning Faisal Al-Ibrahim, with the pair discussing areas of economic, trade, and investment cooperation between the two countries, according to the Saudi Press Agency.

A further meeting involved the Kingdom’s Minister of Commerce Majid Al-Kassabi and Kukies, with the Saudi official posting on X that the pair talked about “strengthening the Kingdom’s economic and trade cooperation and developing promising opportunities in our two friendly countries.”


From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

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From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

  • Inside the Kingdom’s drive to merge energy expertise with digital intelligence

RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.

Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.

According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.

For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.

At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.

AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.

A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.

These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.

As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application. 

Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.

He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.

Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.

“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.

Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.

“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.

Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.

These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.

Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.

“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.

Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.

“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.

The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.

“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”

As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.