ACWA and German Partners Sign MoU to Establish Saudi–Germany Green Ammonia and Hydrogen Corridor

ACWA, recognized globally as the largest private water desalination company and a major player in the energy transition with an early leadership position in green hydrogen, has entered into a Memorandum of Understanding (MoU) with EnBW Energie Baden-Württemberg AG, ROSTOCK PORT GmbH, and VNG AG. This strategic agreement, witnessed by His Royal Highness Prince Abdulaziz bin Salman, Saudi Arabia’s Minister of Energy, and H.E. Katherina Reiche, Germany’s Federal Minister for Economic Affairs and Energy, aims to establish a dedicated green ammonia corridor connecting Saudi Arabia and Germany.

Under the MoU, green ammonia produced at ACWA’s planned Yanbu facility in Saudi Arabia will be transported to the Port of Rostock in northern Germany. From there, VNG intends to process the ammonia using a purpose-built cracking facility to convert it into green hydrogen. The hydrogen will then be injected into Germany’s national hydrogen core network, supporting the country’s broader decarbonization objectives and energy security strategy.

The imported green ammonia, once processed by VNG’s ammonia cracker currently under development, is expected to play a critical role in reducing emissions across Germany’s hard-to-abate sectors, including heavy industry and energy-intensive manufacturing. At the same time, the initiative is designed to serve as a strategic market entry platform for ACWA in Germany, strengthening long-term energy cooperation between the two countries.

ACWA, with EnBW’s support, is currently leading the development of the green hydrogen and green ammonia production hub in Yanbu. The project is progressing according to plan, with Front-End Engineering Design (FEED) for the process plants scheduled for completion by mid-2026. Commercial operations are targeted to begin in 2030. In parallel, ACWA is assessing opportunities to participate in the co-development and potential co-investment of ammonia import and handling infrastructure within Germany, further reinforcing its commitment to the European energy transition.

Commenting on the agreement, ACWA Chief Executive Officer Marco Arcelli described the MoU as a decisive milestone in creating a dependable green ammonia export route from Saudi Arabia to Germany. He highlighted that the collaboration leverages ACWA’s Yanbu hub, supported by EnBW, to deliver scalable green molecules for Europe’s growing hydrogen demand. According to Arcelli, the integrated approach—from production in Saudi Arabia to processing in Rostock—will accelerate global decarbonization efforts, enhance energy security, and reinforce ACWA’s role as a leading Saudi champion of green hydrogen and ammonia.

EnBW Chief Executive Officer Dr. Georg Stamatelopoulos emphasized the importance of international collaboration in driving the energy transition forward. He noted that the partnership with ACWA, Rostock Port, and VNG represents a practical step toward building a reliable and affordable green ammonia supply chain. By combining complementary capabilities, the partners aim to overcome technical, logistical, and commercial challenges more effectively than any single entity could achieve alone.

Within the partnership, EnBW will serve as the off-taker of green ammonia from the Yanbu project and will oversee its commercial arrangements and transportation to Germany. ROSTOCK PORT will act as the port operator, facilitating the handling and storage of the imported ammonia. VNG, meanwhile, is advancing plans for the ammonia cracking facility near the port to ensure a steady supply of green hydrogen to German customers.

Jens Scharner, Managing Director of ROSTOCK PORT, stated that the agreement represents a major step in developing a cross-border hydrogen economy and strengthening Rostock’s position as a key energy port. He added that the cooperation establishes a forward-looking framework for securing long-term green energy supplies and attracting further investment into Germany’s clean energy infrastructure.