Hydrogen from Saudi Arabia to be supplied via Rostock - Germany secures Saudi green hydrogen deal to fuel carbon-neutral industry

A new deal has been struck to supply German industry with green hydrogen produced in Saudi Arabia. The agreement, signed in Riyadh, will see hydrogen generated using desert solar power transported to Germany via the port of Rostock. The project aims to support Germany's shift towards a carbon-neutral economy by replacing fossil fuels in key industrial processes.

The memorandum of understanding was signed by four partners: ACWA Power, EnBW, the Port of Rostock Authority, and VNG. Under the plan, hydrogen will be produced at a facility in Yanbu using wind and solar energy, ensuring a low-carbon process. To simplify storage and shipping, the hydrogen will be chemically converted into ammonia before being transported to Rostock.

Once in Germany, the ammonia will be reconverted into hydrogen at a specialised 'cracker' plant developed by VNG. The Rostock port will serve as the main hub for imports, with the Yanbu facility expected to start commercial operations by 2030. ACWA Power is also considering investments in Germany's ammonia infrastructure to support long-term hydrogen supply.

Hydrogen is set to become a key energy source in Germany's future economy. It will be used to power gas-fired plants and replace coke in steel production, helping to cut industrial emissions.

The project marks a step toward securing green hydrogen for German factories. By 2030, the Yanbu facility could begin supplying hydrogen via Rostock, where it will be processed and distributed. ACWA Power's potential involvement in infrastructure development may further expand Germany's capacity to import and use low-carbon hydrogen.