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ACWA Power: Necessary Studies Underway for Green Hydrogen Project in Egypt

Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)
Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)
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ACWA Power: Necessary Studies Underway for Green Hydrogen Project in Egypt

Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)
Hydrogen is an important source of clean energy to reduce greenhouse gas emissions and mitigate the effects of climate change. (Reuters)

Vice Chairman and Managing Director of ACWA Power Saudi Arabia Raad Al-Saady revealed that necessary studies to develop the green hydrogen project in Egypt were underway.  

In remarks to Asharq Al-Awsat, Al-Saady stressed that Saudi Arabia has enormous potential to export hydrogen thanks to its strategic location and rich natural resources, including vast areas, an abundance of solar energy and wind power, which all make it a leading force in producing and exporting green hydrogen to all parts of the world.  

In December, ACWA Power signed a framework agreement with Egypt to develop the first phase of the green hydrogen project in the Suez Canal Economic Zone, with a total investment exceeding $4 billion.  

Al-Saady explained that the first phase of the project includes developing green ammonia with a capacity of 600,000 tons annually, with the aim to reach a production of two million tons per year in the second phase of the project.  

He added that ACWA Power aims to become a major exporter of green hydrogen in the world, with a special focus on Europe and the Middle East.  

He noted that the Kingdom was progressing steadily towards achieving sustainability goals and diversifying energy sources, through the implementation of major projects within the framework of Vision 2030 with the aim to reach net zero emissions by 2060.  

He added that Saudi Arabia has all the elements that will push it to achieve great success in the green hydrogen sector in the near future, citing the NEOM green hydrogen project, which has a production capacity of 1.2 million tons annually of green ammonia.

Al-Saady stressed that ACWA Power was seeking to reach zero emissions by 2050, explaining that the company is working to develop multiple projects to generate solar energy in different parts of the Kingdom, which contribute significantly to attaining the goals of sustainability and development in the region.  

He added that such projects create new job opportunities, in addition to helping in the development of local content in the energy, water desalination, and green hydrogen sectors.  

ACWA Power, which was established in 2004, is currently present in 12 countries, and its portfolio includes 81 stations under operation or construction, or in advanced stages of development, with an investment value of SAR 317.8 billion ($84.7 billion).

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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.