Saudi Arabia and Germany Sign MoU to Produce Hydrogen

The MoU to Produce Hydrogen was signed on Thursday by Prince Abdulaziz bin Salman and Peter Altmaier, the Energy ministers of both countries in a virtual event

The Kingdom of Saudi Arabia recently announced that it has signed a memorandum of understanding (MoU) with Germany to produce hydrogen. The Energy Minister of Saudia Arabia, Prince Abdulaziz bin Salman signed the MoU with Peter Altmaier, his German counterpart in a virtual event on Thursday.

Prince Abdulaziz bin Salman, Energy Minister, Saudi Arabia signing the MoU with Germany, Credit: Saudi Arabia Government website

Commenting on the occasion, Prince Abdulaziz bin Salman said: “The objectives of the MoU will help achieve goals of the “Kingdom 2030” vision which seek to achieve sustainable development, preserve the environment, support innovation, promote knowledge transfer, and create more qualitative jobs for the sons and daughters of Saudi Arabia. The potential of hydrogen was never unknown, but now it has become a part of [our] strategic energy thinking because hydrogen is one of the most important future fuels. With regard to the contribution toward supporting [countries’ efforts] to address the climate change issue, we affirm our commitment to lead the response in managing emissions, while continuing our socio-economic development.”

Hydrogen has been at the forefront of cutting-edge technology to tackle the climate energy emergency. It has witnessed rapid adoption in many governments across the world. Saudi Arabia, the world’s biggest exporter of oil and natural gas has been one of the newest countries to embrace hydrogen as a solution for sustainable development in the future. It is keen to reduce its dependency on oil exports and to this effect, has been taking several ambitious steps. Late last year, the Saudi Kingdom awarded German energy giant thyssenkrupp a contract to construct a 20MW electrolyser prototype. If successful, it could potentially become the world’s largest green hydrogen facility operating out of Neom, a futuristic island being developed by the Kingdom.

Saudi Arabia is ideal for large-scale hydrogen production. The country’s expansive reserves of natural gas enable it to produce hydrogen by recycling natural gas and simultaneously capturing carbon emissions, also known as blue hydrogen. Last year in September, Saudia Arabia successfully produced and shipped the world’s first cargo of blue hydrogen to Japan.