Saudi Arabia Grants Acwa Exclusive Mandate for Green Hydrogen Exports

A portfolio of 111 assets to underpin the mandate

Acwa presents itself as the world’s largest private water desalination operator and claims a pioneering role in large-scale green hydrogen. The company says it manages a portfolio of 111 assets across 16 countries, with total assets under management of $125 billion (SAR 468.9 billion). Among these assets is the NEOM Green Hydrogen project, which the company describes as one of the world’s largest green hydrogen projects. According to Acwa, this foundation provides the execution base required by a mandate of this national scope.

Global demand for clean molecules is intensifying, fuelling growing international competition among potential producers. Several initiatives illustrate this dynamic: ANDRITZ and RAG Austria are breaking ground on Austria’s largest green hydrogen plant, while in Southeast Asia, JERA and EGAT are partnering to develop the hydrogen-ammonia value chain in Thailand. Against this backdrop, the exclusivity granted to Acwa over Saudi exports gives it a significant positional advantage with future institutional buyers.

Renewable electricity: a second export axis

Beyond green hydrogen, the government mandate charges Acwa with structuring renewable electricity export projects, targeting European and Arab markets as a priority. This component aims to monetise the Kingdom’s solar and wind potential in the form of exportable electricity, complementing hydrogen and derivative flows. However, long-distance renewable electricity exports represent a considerable infrastructure challenge, particularly in terms of cross-border interconnections yet to be built. The mandate specifies neither a timeline nor capacity targets for this segment.

Acwa’s chief executive, Dr. Samir J. Serhan, stated that the government approval reflects the Kingdom’s confidence in the company’s ability to deliver strategic infrastructure at scale. The company says it will draw on its experience in developing, financing, constructing and operating large-scale projects to meet the mandate’s requirements. Acwa adds that it will work with government entities, strategic partners and international stakeholders to develop the integrated export infrastructure.

Commercial and diplomatic implications for the Kingdom

The exclusivity granted to Acwa positions the company as Saudi Arabia’s official interlocutor for future transactions related to green hydrogen and renewable electricity exports. This role adds a sovereign dimension to the company’s already diversified infrastructure platform, spanning renewable energy, hydrogen, electricity transmission and desalination. For the Kingdom, the stated objective is to convert its comparative advantage in renewable resources into long-term export revenues, alongside its oil receipts. The statement does not mention the investment amounts associated with the mandate or the expected export volume targets.