Germany, Saudi Arabia seal energy partnership, companies launch hydrogen supply deals
Clean Energy Wire
The governments of Germany and Saudi Arabia have signed a memorandum of understanding to increase cooperation in the energy sector, the German economy ministry said. The deal, signed by economy minister Katherina Reiche during a trip to Saudi Arabia, builds on a 2021 declaration of intent to cooperate closely on hydrogen.
“Germany and Saudi Arabia are taking their energy partnership to a new level,” said Reiche. The partnership would focus on carbon management technologies, energy efficiency solutions, the digital transformation of the energy sector, cyber security and artificial intelligence, and the development of secure, sustainable and resilient supply chains, the ministry said in a press release.
During the government visit, German energy companies EnBW and VNG, and Saudi Arabia’s Acwa signed a memorandum of understanding to establish “a reliable green ammonia export corridor” between the two countries.
The fuel would be produced in Saudi Arabia at comparably low prices. Cheap renewable electricity can be used to split water into hydrogen and oxygen. For easier transport, nitrogen can be used to react with the hydrogen to produce ammonia, which would then be shipped to the German port of Rostock. Here, it could be used directly, or hydrogen could be split off again in a facility planned by VNG. The “green” hydrogen can then be used as a fuel in industry or for electricity generation when there is insufficient wind or solar power.
Hydrogen plays an important role in German plans for a clean energy future. It would replace fossil fuels like coal and natural gas in processes that cannot easily use renewable electricity directly, for example because they require very high temperatures. It could also serve as a large-scale and long-term energy storage medium.
While Germany’s government has said that the majority of hydrogen consumed in the country would be imported – most of it through pipelines from southern Europe – researchers have warned that domestic production should be strengthened as well.