Germany and Saudi Arabia agreed to strengthen energy collaboration during German Economy Minister Katherina Reiche’s visit to Riyadh on Sunday. The move signals a deepening partnership in energy, industrial innovation, and green technology.
Reiche and Saudi Energy Minister Abdulaziz bin Salman signed 10 letters of intent to enhance cooperation between German and Saudi companies. The agreements cover energy, hydrogen, artificial intelligence, industrial value creation, and innovation.
Reiche highlighted Saudi Arabia’s goal to diversify its revenue sources amid falling oil prices. She emphasized that diversification helps manage unemployment and provides opportunities for the young generation.
The memorandum of understanding includes the energy and chemicals sectors. It focuses on greenhouse gas management, digitalization in energy, and establishing reliable supply chains. The agreement also strengthens public-private sector collaboration in both countries.
During the visit, German and Saudi energy companies finalized an ammonia export agreement. The deal supports Saudi Arabia’s green hydrogen production and Germany’s growing hydrogen infrastructure.
Saudi company ACWA Power, German energy supplier EnBW Baden-Wurttemberg, the northern German port of Rostock, and gas importer VNG signed the agreement. Hydrogen will be transported from Yanbu to Rostock in the form of ammonia, which is easier to store, transport, and convert back into hydrogen.
Hydrogen can generate electricity in new gas-fired power plants when solar or wind power is insufficient. It can also replace coke in steel production, cutting significant carbon dioxide emissions.
The production plant in Yanbu is set to begin commercial operations by 2030. ACWA Power may also help develop and finance ammonia infrastructure in Germany, further expanding the bilateral energy partnership.
Experts say Germany Saudi Cooperation strengthens regional energy security and promotes climate-friendly technology. Analysts note that hydrogen trade could reshape global energy supply chains while supporting sustainable development goals in both countries.
Looking ahead, both nations plan further collaboration in green hydrogen, energy innovation, and industrial projects, reinforcing Germany-Saudi Cooperation as a model for international energy partnerships.
