Hydrogen from Saudi Arabia to be supplied via Rostock - Germany locks in Saudi green hydrogen deal to power its industries by 2030

Germany has taken a significant step towards a carbon-neutral future by securing a supply of green hydrogen from Saudi Arabia. A new agreement will see hydrogen produced using desert solar power shipped to Germany, where it will help fuel industrial plants across the country.

The deal was finalised in Riyadh with a memorandum of understanding signed by ACWA Power, EnBW, the Port of Rostock Authority, and VNG. Under the plan, hydrogen will be generated in Yanbu using wind and solar energy, ensuring a low-carbon production process.

To simplify transportation, the hydrogen will be converted into ammonia before being shipped to the German port of Rostock. Once there, a specialised 'cracker' developed by VNG will convert it back into hydrogen for industrial use.

The Yanbu facility is expected to start commercial operations by 2030. ACWA Power has confirmed that, for now, Rostock will be the only German location involved in ammonia infrastructure for distributing green hydrogen. However, the company is examining further participation in developing and financing related projects.

The initiative underscores Germany's commitment to integrating hydrogen into its energy strategy, reducing reliance on fossil fuels while supporting heavy industry.

The agreement ensures a future supply of green hydrogen for German factories, with production and shipping set to begin by the end of the decade. By converting ammonia back into hydrogen at Rostock, the project aims to provide a reliable and sustainable energy source for the country's industrial sector.