Saudi Arabia Refineries Co. (SARCO) has signed a non-binding memorandum of understanding (MoU) with UAE-based Go Energy to explore the development of a green hydrogen and ammonia project in Saudi Arabia. The agreement represents another major step in the Kingdom’s ongoing efforts to expand its renewable energy footprint and lead global hydrogen production.

Under the terms of the MoU, the two companies will jointly conduct a feasibility study for the project and establish a legal framework to guide their collaboration. The agreement is valid for one year, with the option for extension by mutual consent, SARCO said in a statement to the Tadawul stock exchange.

The partnership supports Saudi Arabia’s broader national strategy to generate 50 percent of its electricity from renewable sources by 2030 and become the world’s largest exporter of green hydrogen. The Kingdom aims to produce 1.2 million tonnes of green hydrogen annually by the end of the decade, aligning with the goals of the National Renewable Energy Program to diversify its energy portfolio and reduce dependence 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 company said, noting that the agreement carries no immediate financial implications and involves no related parties. The move is consistent with SARCO’s strategy to expand operations through specialised energy partnerships and support the Kingdom’s clean energy transition.

Green hydrogen, produced through electrolysis powered by renewable energy sources, is regarded as a key enabler of decarbonisation, as it emits no greenhouse gases during production. The initiative forms part of Saudi Arabia’s net-zero target for 2060 and complements the country’s growing investments in both green and blue hydrogen. Major domestic players, including Saudi Aramco and ACWA Power, are leading projects that strengthen the nation’s position in the global energy transition.

Saudi Arabia is also developing the world’s largest green hydrogen plant in NEOM, which is expected to be operational by December 2026, according to NEOM Green Hydrogen Co. CEO Wesam Al-Ghamdi. In a related move, ACWA Power signed multiple agreements in July to export renewable electricity and green hydrogen to Europe, reinforcing the Kingdom’s ambition to become a global hub for clean energy.

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https://www.arabnews.com/node/2618628/amp