Saudi Arabia and Germany Establish Green Hydrogen Corridor via Rostock Port

Landmark Agreement for Green Energy Supply

A significant step towards establishing a robust green energy supply chain between Saudi Arabia and Germany was taken on February 1, 2026, with the signing of a Memorandum of Understanding (MoU). The agreement involves Saudi Arabia's ACWA Power, a leading developer of green hydrogen projects, and German entities EnBW Energie Baden-Württemberg AG, ROSTOCK PORT GmbH, and VNG AG. This collaboration aims to create a dedicated corridor for the export of green ammonia from Saudi Arabia to Germany, with the port of Rostock serving as a pivotal entry point.

Details of the Hydrogen Bridge

Under the terms of the MoU, the partners are committed to establishing a 'hydrogen bridge' between the two nations. The primary objective is to deliver an initial target of 200,000 tons of green hydrogen annually by 2030. ACWA Power will play a central role as the lead developer, investor, and operator of the green hydrogen and green ammonia production facilities located at its Yanbu hub in Saudi Arabia. The green hydrogen will be produced using wind and solar power.

Rostock's Role as a Key Energy Hub

The German port of Rostock is designated as the receiving point for the imported green ammonia. Here, VNG AG plans to develop an ammonia cracker facility near the port to convert the imported green ammonia back into green hydrogen. This converted hydrogen will then be injected into Germany's national grid, facilitating its distribution to industrial and other customers. Rostock's seaport is being developed into a hub for hydrogen and green ammonia, with plans for a 1 gigawatt energy supply capacity and a hydrogen pipeline connecting it to the Central German Chemical Triangle.

Strategic Importance for Energy Transition

This agreement underscores Germany's proactive efforts to diversify its energy sources and accelerate its decarbonization goals, particularly in the wake of geopolitical shifts. Germany views hydrogen as crucial for its energy needs, especially for sectors like steel production and electricity generation when renewable sources are insufficient. For Saudi Arabia, this partnership aligns with its Vision 2030, which includes ambitions to become a leading global producer and exporter of green hydrogen, leveraging its abundant renewable energy potential. The collaboration is seen as essential for advancing the transformation of the energy system and ensuring affordable, sustainable energy solutions.