Saudi Arabia is advancing its green hydrogen project after Saudi Arabia Refineries Co., or SARCO, signed a non-binding memorandum of understanding with UAE-based Go Energy. The initiative aims to explore the production of renewable hydrogen and ammonia, supporting the Kingdom’s energy transition. SARCO confirmed that the agreement will focus on joint studies and legal frameworks to strengthen collaboration between the two firms.
The MoU is valid for one year unless both parties agree to extend it. In addition, SARCO clarified that the deal has no immediate financial implications and involves no related parties. Furthermore, the move highlights SARCO’s strategy to expand its services through specialized energy partnerships. At the same time, the agreement reinforces Saudi Arabia’s broader commitment to renewable energy development.
Consequently, this partnership could pave the way for future collaborations in the Kingdom’s clean energy sector. Officials believe it will also help attract both local and international stakeholders. The agreement signals a growing trend in cross-border energy cooperation within the Gulf region. Analysts suggest similar partnerships could accelerate the adoption of renewable technologies.
Saudi Arabia targets generating 50 percent of its electricity from renewable sources by 2030. The Kingdom also plans to become the world’s largest green hydrogen exporter, aiming to produce 1.2 million tonnes annually by the decade’s end. These initiatives are part of the National Renewable Energy Program, which focuses on diversifying energy sources and reducing dependence on fossil fuels.
Green hydrogen is produced through electrolysis powered by renewable energy, which emits no greenhouse gases. Experts emphasize that it is a key tool for decarbonizing industries and achieving net-zero targets. Saudi Arabia has committed to net-zero emissions by 2060, investing heavily in green and blue hydrogen technologies. Leading companies such as Saudi Aramco and ACWA Power are driving the Kingdom’s clean energy transition.
The Kingdom is also developing the world’s largest green hydrogen plant in NEOM, expected to be operational by December 2026. ACWA Power recently signed agreements to export renewable electricity and green hydrogen to Europe, highlighting Saudi Arabia’s ambitions to become a global clean energy hub. Observers note that such projects are likely to attract international partnerships and investment.
Looking forward, SARCO and Go Energy plan to conduct technical studies and establish legal frameworks to ensure the project’s success. Officials expect the initiative to strengthen Saudi Arabia’s renewable energy market and enhance regional collaboration. The project could also serve as a model for other Gulf countries pursuing clean energy goals.
Analysts predict that these initiatives will create long-term opportunities for investment, innovation, and regional leadership in sustainable energy. Furthermore, the success of this green hydrogen project may accelerate the Kingdom’s broader decarbonization strategy. Overall, it represents a major step toward a cleaner and more diversified energy future.
