Granting 'Acwa Power' an exclusive right to export green hydrogen produced in Saudi Arabia and its derivatives places the company in a strategic position within a new phase of energy transitions. If 'Aramco' has represented Saudi Arabia's front in oil markets since 1933, 'Acwa' today advances to a role at the forefront of green energy exports, tasked with exporting green hydrogen and its derivatives and developing projects related to renewable electricity and international markets.

The mandate, according to the company's announcement today, includes green hydrogen, green ammonia, green methanol, and green fuel to achieve national targets, in addition to developing projects for generating electricity from renewable sources, transmitting and exporting it to European and Arab markets. This development gives Acwa Power a strategic position in an emerging market that has not yet reached full commercial maturity.

According to company data, its current portfolio totals about 223,000 tons per year, of which 3,000 tons per year are in operation and about 220,000 tons per year under construction. On the long-term plan, the company aims to increase its green hydrogen capacity to up to 1 million tons per year by 2030.

Wed, 01 2026

"Acwa" is present in the industry

Acwa's relationship with green hydrogen did not start with this decision. The company is already present in the NEOM green hydrogen project, in which it owns a net stake of 33.3% alongside 'Air Products' and 'NEOM'. The project aims to produce 1.2 million tons per year of green ammonia, relying on about 4 GW of renewable energy, with total investments of $8.5 billion, according to company data.

The company's experience extends beyond Saudi Arabia. In Uzbekistan, Acwa Power signed a hydrogen purchase agreement with a capacity of 3,000 tons per year, along with a renewable energy purchase agreement with a capacity ranging between 52 and 100 MW, and a contract value of $100 million. The company also signed a memorandum of understanding within the 'Saudi-German Green Hydrogen Bridge' with the German company SEFE, with a preliminary goal of exporting 200,000 tons per year of green hydrogen from Saudi Arabia to Europe by 2030.

Mon, 01 2026

Hydrogen in an Early Stage

On a global level, the green hydrogen market is still in an early stage. According to the International Energy Agency in its Global Hydrogen Review 2026, global hydrogen demand exceeded 100 million tons in 2025, but most of it is still directed to traditional uses in industry and refining, while low-emission hydrogen production grew 20% to approach only 1 million tons, i.e., less than 1% of total global production. Meanwhile, committed low-emission hydrogen production could reach 4.3 million tons by 2030, and could rise to more than 6 million tons if strong projects take final investment decisions in 2026 or 2027, according to the agency.

Saudi Arabia Has the Comparative Advantage

Green hydrogen is produced through the electrolysis of water using renewable electricity. Blue hydrogen is produced from gas or coal with carbon capture. Therefore, the competitiveness of green hydrogen depends primarily on the cost of renewable electricity, the price of electrolyzers, the cost of financing, and the transport and conversion requirements into derivatives such as ammonia or methanol.

Hence the potential importance of Saudi Arabia in this sector, as it possesses solar and wind resources, vast areas, and experience in energy projects and industrial infrastructure.