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ACWA Power and Tunisian government sign MoU for major green H2 project

Saudi-listed ACWA Power has signed a memorandum of understanding (MoU) with the Tunisian Government represented by the Ministry of Industry, Mines and Energy to explore the potential for a project that would produce up to 600,000 tpy of green H2 in three phases, for export to Europe.

The agreement was signed by Fatma Thabet Chiboub, Minister of Industry, Mines and Energy in Tunisia, and Marco Arcelli, Chief Executive Officer of ACWA Power. ACWA Power would develop, operate and maintain 12 GW of renewable energy electricity generation units, including storage systems and transmission lines, along with water desalination plants, electrolyzers and infrastructures to connect to the main pipeline. The first phase would involve installing 4 GW of renewable energy units, 2 GW of electrolyzer capacity, as well as battery storage facilities, to produce 200,000 tpy of green H2. The green H2 production is aimed to be exported through the South2 Corridor, a H2 pipeline initiative led by European TSOs and identified as Project of Common Interest by the EU, connecting Tunisia to Italy, Austria and Germany.

Ouael Chouchene, Secretary of State for Energy Transition, said, “This project aligns perfectly with the Tunisian Government's national green H2 strategy released in October 2023, which targets an annual production of 8.3 MMt of green H2 and byproducts by 2050. We are confident that this agreement with ACWA Power will leverage Tunisia's strengths, including its strategic geographic location, existing infrastructure, and skilled workforce, to create a more sustainable future for the country."

The project intends to play an integral role in supporting Tunisia’s National Strategy for the Development of green H2 and its derivatives, which was launched in October 2023. The strategy includes an action plan for exporting more than 6 MMt of green H2 to Europe by 2050.

“We are excited to work with the Tunisian Government on this visionary project, bringing our expertise in renewables, desalination and green H2 to build a bridge with Europe to help reach its decarbonization targets. This project can also contribute significantly to economic growth, job creation, and sustainable energy solutions, exemplifying our shared vision for a greener future,” said Marco Arcelli, Chief Executive Officer of ACWA Power.

The agreement marks ACWA Power’s ambition to rapidly expand its green H2 portfolio. Construction is well underway at the NEOM green H2 project, a joint venture between ACWA Power, Air Products, and NEOM, to create the world’s first utility-scale green H2 plant, capable of producing 1.2 MMtpy of green ammonia.

Work is also underway on ACWA Power’s second green H2 project, located in Uzbekistan. The first phase of this project will be capable of producing 3,000 tpy of green H2, with the intention of expanding to a second phase.