RIYADH: Saudi Arabia’s ACWA Power has signed a memorandum of understanding with Austrian utility Verbund to potentially develop green hydrogen projects in the Middle East.
Verbund will use the hydrogen produced by the projects in the region as a renewable energy source for central Europe, mainly Austria, in accordance with the memorandum of understanding.
“Today’s announcement is another illustration of our enduring commitment to combining ingenuity and entrepreneurship to ensure electricity is produced reliably, responsibly and sustainably globally,” said ACWA Power President Mohammad Abunayyan said in a press release.
The arrangement between Verbund and the Saudi developer, investor and operator took place during the ongoing Abu Dhabi Sustainability Week.
Abunayyan added, “Together with Verbund, we are excited to jointly explore opportunities to supply green hydrogen to Central Europe with a consistent focus on Austria.
He said the move would not only support nations in their energy transition efforts, but also boost social development, industrial progress and economic growth in the region.
Since green hydrogen is created by electrolysis of water using only renewable energy sources and emits zero carbon dioxide emissions, it is the cleanest and most fuel effective in the world and an effective tool to combat climate change.
Michael Strugl, CEO of Verbund, noted that the Austrian company is one of the largest hydropower producers in Europe. “With our portfolio of renewable energy generation, electricity and gas transmission as well as energy trading and services, we cover the entire energy value chain. Green hydrogen is a logical next step.
Although the collaboration between ACWA Power and Verbund is just beginning, both parties said they are well positioned to move the project forward quickly, in part due to ACWA Power’s continued activities and involvement in the field. green hydrogen.
For example, ACWA Power’s involvement in NEOM Green Hydrogen Co. portrays the company’s capabilities to add much to the collaboration.
NGHC, which is a joint venture equally owned by ACWA Power, Air Products and NEOM, is working on the world’s first large-scale green hydrogen project.
Scheduled to be completed by 2026, the system is expected to produce up to 600 tonnes per day of carbon-free green hydrogen in the form of green ammonia. This will serve as an inexpensive substitute for current means of transportation.
“Verbund’s technology capabilities and over 75 years of hydropower expertise, combined with ACWA Power’s green hydrogen knowledge, experience and operations, will help ensure that the goals, conditions and aspirations of the MoU will be achieved in the future,” the press release concluded.