A green hydrogen and ammonia project is set to take shape in the kingdom after Saudi Arabia Refineries Company signed a non-binding memorandum of understanding with UAE-based Go Energy.
The deal will see the two companies conduct a joint study on the project and design a legal framework to support their collaboration, SARCO said in a statement to Tadawul.
The MoU is valid for one year unless extended by mutual agreement, the statement added.
The deal aligns with Saudi Arabia’s wider strategy to generate 50 per cent of its electricity from renewable sources by 2030 and to become the world’s largest exporter of green hydrogen, targeting annual production of 1.2 million tonnes by the end of the decade.
This commitment is part of the broader National Renewable Energy Programme strategy, aimed at diversifying Saudi Arabia’s energy portfolio and reducing reliance on fossil fuels.
“SARCO is pleased to announce the signing of a non-binding MoU with the UAE-based GO Energy Company to collaborate on developing the green hydrogen (ammonia) project in Saudi Arabia,” the Tadawul-listed firm said.
SARCO added that the agreement has no immediate financial implications and involves no related parties. The move also reflects the company’s strategy to expand services through specialised energy partnerships.
Green hydrogen is seen as a critical component in reducing global carbon emissions because it produces no greenhouse gases during production.
With a net-zero emissions target by 2060, Saudi Arabia is investing heavily in both green and blue hydrogen, with companies like Saudi Aramco and ACWA Power spearheading the energy transition in the kingdom.
The kingdom is also building the world’s largest green hydrogen plant in the futuristic city of NEOM, expected to be operational by December 2026, as confirmed by NEOM Green Hydrogen Company chief executive officer Wesam Al Ghamdi in November 2024.
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