ACWA Power and Snam team up on cross-border hydrogen supply chain

Saudi Arabian energy company ACWA Power has signed a memorandum of understanding (MoU) with Snam to collaborate on establishing a green hydrogen supply chain to Europe.

This partnership will explore joint investments aimed at establishing an international supply chain for a supply of green hydrogen from Saudi Arabia to Europe.

The partners will also evaluate the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the SoutH2 Corridor, the 3,300km long corridor reaching central Europe through Italy, Austria and Germany.

Commenting on the MoU, Marco Arcelli, CEO of ACWA Power, said: “We are excited to join forces with Snam to drive significant advancements in the green hydrogen sector. With power sector emissions already down 40% compared to 20 years ago, we now need to focus our collective efforts on new, low carbon molecules to decarbonize our sectors. Bringing our expertise together will help accelerate this process”.

Stefano Venier, the CEO of Snam, added: “The EU’s ambitious decarbonization targets need decisive action across all manufacturing sectors, utilizing all available technologies in a practical, efficient and accelerated manner. Hydrogen plays a key-role here, and we are glad to pursue development opportunities in this field also through agreements like the one we signed with ACWA Power: the development of the ammonia import terminal is synergic with that of the SoutH2 Corridor”.

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The ACWA and Snam agreement materialised alongside a number of other strategic agreements that were signed during the visit of the Italian PM to Saudi Arabia, on the sidelines of the Saudi-Italian High Level Roundtable Meeting in AlUla.

The aim of the meeting was to foster bilateral relations in the fields of power generation, project finance and water desalination technologies.

To this end, ACWA Power also signed strategic Memoranda of Understanding (MoUs) with four prominent Italian organisations including with power generation equipment manufacturer Ansaldo Energia.

The ACWA Power subsidiary NOMAC Holding's two-year agreement with Ansaldo Energia will expand service capabilities in gas turbine part refurbishment, exploring joint projects in Africa using Italian concessional finance.

The agreements signed by ACWA Power with leading Italian entities align with the Mattei Plan initiative, which emphasises fostering sustainable development and economic collaboration between Europe and key regions across Africa and beyond.

These partnerships reflect Italy's strategic commitment to enhancing growth and investment opportunities in countries such as Morocco, Tunisia, Egypt, and Senegal—markets where ACWA Power is actively operating, or plans to operate—while strengthening EU-MENA ties to advance the global energy transition.