RIYADH: German and Saudi energy companies have signed an agreement to export ammonia, strengthening their partnership on green hydrogen.
A memorandum of understanding was signed in Riyadh on Sunday by Saudi firm ACWA Power, German energy supplier EnBW Baden-Württemberg, the northern German port of Rostock and gas importer VNG. The deal was announced during a visit by German Economy Minister Katherina Reiche, who met Saudi Energy Minister Abdulaziz bin Salman.
Hydrogen produced in a climate-neutral way, such as using solar power, can serve as a clean energy source. Under the plan, hydrogen will be exported from the Red Sea port of Yanbu to Rostock as ammonia, which is easier to transport and store. In Rostock, the ammonia will be converted back into hydrogen using a cracker developed by VNG.
The hydrogen and ammonia production plant in Yanbu is scheduled to start commercial operations in 2030. ACWA is also considering participating in developing and potentially financing ammonia infrastructure in Germany. — dpa
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