Saudi Arabia and the Netherlands have signed a memorandum of understanding (MoU0 to cooperate on the development and trade of green energy and hydrogen technologies.
The MoU was signed on Thursday at the World Hydrogen Summit in Rotterdam, where Saudi energy minister Prince Abdulaziz bin Salman said the Netherlands could be the main destination for the transport of hydrogen derived from renewable energy sources from Saudi Arabia to Europe.
“Rotterdam would be our hub to Europe”, the prince said adding that the Netherlands and Germany would be Saudi Arabia’s “natural partners” in the green hydrogen trade. “You are putting facilities on the ground, you are building storage pipelines, you have a plan”.
Green hydrogen is a clean fuel that can be used to power various sectors such as transport, industry, and electricity generation. It is produced by splitting water molecules into hydrogen and oxygen using renewable energy sources such as solar or wind power.
Saudi Arabia is currently developing a $5 billion green hydrogen project in NEOM, a futuristic city in the northwest of the kingdom, powered by renewable energy. The project aims to supply 650 tons of carbon – free hydrogen daily for export to global markets in the form of liquid ammonia.
The project, which is expected to start production in 2026, is part of Saudi Arabia’s efforts to diversify its economy and reduce its greenhouse gas emission through its local and regional initiatives – the Saudi Green Initiative and the Middle East Green Initiative.
The MoU with the Netherlands is also in line with Saudi Arabia’s Vision 2030, which seeks to enhance the kingdom’s role as a global energy hub and a leader in clean energy production and innovation.
