Saudi Arabia: Saudi-listed ACWA Power, the world’s largest private water desalination company and a leader in energy transition, has signed an agreement with the Tunisian government for a project that will produce up to 600,000 tons per year of green hydrogen in three phases, for export to Europe.

The memorandum of understanding was signed by Fatma Thabet Chiboub, Tunisia’s minister of industry, mines and energy, and Marco Arcelli, CEO of ACWA Power.

ACWA Power will develop, operate and maintain 12GW of renewable energy electricity generation units including storage systems and transmission lines, along with water desalination plant, electrolyzers and infrastructures to connect to the main pipeline.

The first phase will involve installing 4GW of renewable energy units, 2GW of electrolyzer capacity, as well as battery storage facilities, to produce 200,000 tons per year of green hydrogen, which will be exported through the South2 Corridor, a hydrogen pipeline initiative led by European TSOs connecting Tunisia to Italy, Austria and Germany.

Commenting on the announcement, Ouael Chouchene, secretary of state for energy transition, said: “This project aligns perfectly with the Tunisian government’s national green hydrogen strategy released in October 2023, which targets an annual production of 8.3 million tons of green hydrogen and byproducts by 2050. We are confident that this agreement with ACWA Power will leverage Tunisia’s strengths, including its strategic geographic location, existing infrastructure, and skilled workforce, to create a more sustainable future for the country.”

The project will play an integral role in supporting Tunisia’s National Strategy for the Development of Green Hydrogen and its Derivatives, which was launched in October 2023. The strategy includes an action plan to export more than 6 million tons of green hydrogen to Europe by 2050.

“We are excited to work with the Tunisian government on this visionary project, bringing our expertise in renewables, desalination and green hydrogen to build a bridge with Europe to help reach its decarbonization targets. This project can also contribute significantly to economic growth, job creation, and sustainable energy solutions, exemplifying our shared vision for a greener future,” Arcelli said.

The agreement highlights ACWA Power’s ambition to rapidly expand its green hydrogen portfolio. Construction is well underway at the NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM, to create the world’s first utility-scale green hydrogen plant, capable of producing 1.2 million tons of green ammonia per year.

Work is also underway on ACWA Power’s second green hydrogen project, in Uzbekistan. The first phase of this project will be capable of producing 3,000 tons of green hydrogen per year.