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Saudi Arabia and Germany Partner to Build Green Ammonia Energy Corridor

Prime Highlights 

  • ACWA Power has signed an agreement to establish a green ammonia export corridor from Saudi Arabia to Germany, supporting clean energy trade between the two countries. 
  • The project strengthens Saudi Arabia’s position in renewable energy while helping Germany advance its hydrogen and decarbonization goals. 

Key Facts 

  • Green ammonia will be produced at ACWA Power’s planned facility in Yanbu and shipped to Rostock Port in Germany for conversion into green hydrogen. 
  • The project is being developed with EnBW, Rostock Port, and VNG, with commercial operations expected to begin in 2030. 

Background: 

Saudi utility major ACWA Power has signed a memorandum of understanding to develop a green ammonia export corridor linking Saudi Arabia and Germany, marking a significant step in strengthening international clean energy trade. 

The agreement was signed with EnBW, Rostock Port, and Verbundnetz Gas AG. The signing was attended by Saudi Energy Minister Prince Abdulaziz bin Salman and Germany’s Economic Affairs and Energy Minister Katherina Reiche. 

Under the agreement, green ammonia produced at ACWA Power’s planned facility in Yanbu will be shipped to Rostock Port in Germany. Once imported, VNG will process the ammonia at an ammonia-cracking facility currently under development, converting it into green hydrogen for injection into Germany’s national hydrogen network. 

ACWA Power is expanding its renewable energy business and boosting Saudi Arabia’s role as a clean energy supplier to Europe. The initiative is expected to support global efforts to cut emissions while improving Europe’s long-term energy security. 

With support from EnBW, ACWA Power is developing a green hydrogen and ammonia facility in Yanbu, which is planned to begin commercial operations in 2030. EnBW will purchase the green ammonia and handle its transport to Germany, while Rostock Port will manage port operations. 

Industry partners highlighted the importance of international cooperation in accelerating the energy transition. The corridor is expected to help Germany cut emissions in industries that are hard to decarbonize. 

The agreement follows discussions between Saudi and German officials to strengthen economic ties and cooperation in energy, industry, and mining. 

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