Acwa Power has signed a preliminary agreement with Germany’s energy supply company EnBW to create a green ammonia corridor to help decarbonise hard-to-abate sectors in the European country.
The area will extend from the Saudi company’s Yanbu project to Germany’s Port of Rostock, where VNG, a Leipzig-based energy infrastructure developer, plans to convert ammonia into green hydrogen for use by German businesses, according to a statement.
Acwa and EnBW are currently developing the green hydrogen and ammonia production site in Yanbu, with a planned commercial operation date of 2030.
The front-end engineering design for the process plants in the Yanbu project is on schedule for completion by mid-2026.
Acwa is evaluating possible investment in ammonia infrastructure in Germany, the statement added.
Germany plans to expand its hydrogen capacity, with the government estimating that imports will make up 50-70 percent of its needs.
In January 2025 Acwa Power and the Italian natural gas transport operator Snam agreed to jointly explore investments to set up a green hydrogen supply chain.
The Saudi-listed company, which is 44 percent owned by the Public Investment Fund, is expanding its green hydrogen portfolio, with work under way at the 1.2 million tonne-per-year Neom Green Hydrogen Project in Saudi Arabia. This is due to be completed by the end of 2026.
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Shares of Acwa Power fell 0.72 percent to close at SAR186 on Sunday but are up more than 2 percent so far this year.
Saudi Arabia’s minister of investment Khalid Al Falih said in June 2024 that the country was preparing to announce a line-up of hydrogen projects to be managed by PIF as part of its broader transition strategy.
In April 2025 Oman signed a joint development agreement to establish a liquefied hydrogen corridor for exports to Europe.
Once built, the corridor will serve as a direct export route for EU-compliant liquefied hydrogen from Duqm port to Amsterdam port.
