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Saudi Arabia and Germany Strengthen Ties for Clean Hydrogen Cooperation

Saudi Arabia and Germany are enhancing collaboration in the clean hydrogen sector, leveraging their respective strengths to develop a cost-effective and sustainable hydrogen value chain. This strategic partnership focuses on production, supply, distribution, and applications to advance the global hydrogen economy.

A Strategic Fit for Hydrogen Development

Both nations bring complementary expertise to the table:

• Germany is a global leader in hydrogen technology innovation, research, and manufacturing, supported by strong clean energy policies.
• Saudi Arabia offers extensive low-carbon fossil fuel production capabilities, significant CO? storage capacity, and abundant renewable energy resources for large-scale hydrogen production.

Shared Goals and Strategic Vision

Germany’s National Hydrogen Strategy aims to cut greenhouse gas emissions by 65% by 2030 and achieve climate neutrality by 2045. With a €9 billion investment, including €2 billion dedicated to international hydrogen partnerships, the country anticipates hydrogen demand to rise from 55-60 TWh today to 90-110 TWh by 2030, with significant reliance on imports.

Meanwhile, Saudi Arabia’s Net-Zero 2060 Target includes plans to produce 4 million tonnes of blue and green hydrogen annually by 2030. A national hydrogen strategy is in development, focusing on domestic applications in transport, synthetic fuels, and steel production, along with a strong emphasis on exports.

Key Initiatives in Saudi-German Hydrogen Cooperation

Since signing a Memorandum of Understanding (MoU) on Hydrogen Cooperation in March 2021, both countries have taken significant steps to drive hydrogen development, including:

• Business Collaborations – Promoting B2B partnerships, joint ventures, expert forums, and pilot projects.
• Technology Exchange – Facilitating research and development, knowledge-sharing, and workforce training.
• Regulatory Frameworks – Establishing common standards, certifications, and policies for a harmonized hydrogen market.

This partnership highlights hydrogen’s critical role in decarbonizing hard-to-abate sectors and advancing a Circular Carbon Economy (CCE). By integrating resources, expertise, and infrastructure, Saudi Arabia and Germany are set to accelerate the transition to a clean hydrogen-powered future, reinforcing their positions as key players in the global energy landscape.