Recently, Saudi Arabian Refining Company (SARCO) signed a non-binding memorandum of understanding (MoU) with UAE-based Go Energy to explore the feasibility of developing green hydrogen and ammonia production facilities in Saudi Arabia. The proposed collaboration aims to assess opportunities in the clean energy production sector and support the Kingdom of Saudi Arabia's efforts to expand its renewable energy industry.
Joint feasibility study, valid for one year and renewable
Under the agreement, the two companies will jointly conduct a feasibility study to evaluate the proposed facilities. They will also work together to establish the legal structure and framework for the collaboration. The MoU is valid for one year and may be renewed by mutual consent. Both companies stated that the preliminary agreement will have no immediate financial impact and does not involve any related-party transactions, aiming to explore new business opportunities and expand service capabilities through cooperation on specific energy projects.
Saudi Arabia targets 50% renewable energy by 2030 and 1.2 million mt of annual green hydrogen capacity by the end of the decade
The proposed project aligns with Saudi Arabia's broader strategy of diversifying its energy mix and improving the utilization rate of renewable energy. The Kingdom aims to achieve50% of its electricity from renewable energyby 2030. In addition, Saudi Arabia is committed to becoming a major global supplier of green hydrogen, targetingan annual capacity of 1.2 million mtby the end of the decade.
These ambitions are part of Saudi Arabia's National Renewable Energy Program, which aims to strengthen China's clean energy sector, reduce dependence on fossil fuels, and support the country's long-term environmental goals. Saudi Arabia is also working toward achieving net-zero emissions by 2060 and has been investing in both green and blue hydrogen projects, with major energy companies including Saudi Aramco and ACWA Power playing important roles in developing its hydrogen industry.
NEOM flagship project leads the way, actively seeking international cooperation
A flagship project of the Kingdom of Saudi Arabia is the large-scale green hydrogen project at NEOM, which is expected to support the future production and export of low-carbon fuels. Saudi Arabia is also actively seeking international cooperation to consolidate its position in the global clean energy market. ACWA Power's agreements with Europe on renewable electricity and green hydrogen exports are another reflection of these efforts.
The proposed SARCO-Go Energy collaboration will further explore opportunities in the green hydrogen and ammonia sectors, with the feasibility study helping to determine the project's potential and supporting Saudi Arabia's continued expansion of its clean energy infrastructure and its positioning in the emerging global hydrogen economy.
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