Saudi Arabia’s private utility ACWA Power has signed a deal to support plans to set up an export corridor for clean energy with the Netherlands.
As part of the memorandum of understanding (MoU), ACWA Power, LNG shipping firm GasLog and Dutch entities Zenith Energy Terminals and Port of Amsterdam will explore the viability of establishing a trade corridor for liquified green hydrogen between ACWA Power’s production sites and the port of Amsterdam.
Zenith Energy operates energy storage and distribution facilities in Amsterdam port, while GasLog is a leading global provider of LNG shipping services.
Based on the results of the feasibility study, the Saudi utility and the entities may later enter a joint development agreement (JDA), a statement said on Monday.
The JDA will define roles and responsibilities of the stakeholders, as well as engage with “prospective offtakers” within the vicinity of the port of Amsterdam and its hinterland, it said.
“The parties will also investigate suitable incentive opportunities that could promote demand for green hydrogen and make it more affordable.”
ACWA Power plans to become a major global producer of green hydrogen. It is currently developing and pursuing numerous projects in several locations, including Saudi Arabia, Uzbekistan and other parts of the Middle East and Africa.
The Dutch government had previously expressed plans to set aside EUR9 billion ($9.5 billion) for the development of green hydrogen production and distribution until 2030.
(Writing by Cleofe Maceda; editing by Seban Scaria)