Saudi’s ACWA Power, Tunisia ink deal to develop key green hydrogen project

ACWA Power has signed a memorandum of understanding (MoU) with the Tunisian Government to explore a significant green hydrogen project.

The agreement, representing Tunisia’s Ministry of Industry, Mines, and Energy, was signed by Minister Fatma Thabet Chiboub and ACWA Power CEO Marco Arcelli.

The ambitious project aims to produce up to 600,000 tonnes per year of green hydrogen across three phases for export to Europe.

ACWA Power, the world’s largest private water desalination company and a pioneer in the space of green hydrogen, will develop, operate, and maintain 12GW of renewable energy electricity generation units, storage systems, transmission lines, a water desalination plant, electrolysers, and related infrastructure.

Arcelli emphasised the potential economic and environmental benefits of the project. “We are excited to work with the Tunisian Government on this visionary project, bringing our expertise in renewables, desalination, and green hydrogen to build a bridge with Europe to help reach its decarbonisation targets.

“This project can also contribute significantly to economic growth, job creation, and sustainable energy solutions, exemplifying our shared vision for a greener future.”

The first phase will involve installing 4GW of renewable energy units, 2GW of electrolyser capacity, and battery storage facilities, targeting the production of 200,000 tonnes per year of green hydrogen.

The green hydrogen produced will be exported via the South2 Corridor, a hydrogen pipeline initiative identified as a Project of Common Interest by the EU, which will connect Tunisia to Italy, Austria and Germany.

Ouael Chouchene, Secretary of State for Energy Transition, highlighted the alignment of this project with Tunisia’s national green hydrogen strategy, unveiled in October last year.

The strategy aims to produce 8.3 million tonnes of green hydrogen and byproducts annually by 2050.

Chouchene expressed confidence that the agreement with ACWA Power will leverage Tunisia’s strategic location, infrastructure, and skilled workforce to create a sustainable future.

ACWA Power aims to further expand its green hydrogen portfolio

This MoU signifies ACWA Power’s goal to expand its green hydrogen portfolio rapidly. The company is already progressing with the NEOM Green Hydrogen Project in Saudi Arabia, a joint venture with Air Products and NEOM, which aims to produce 1.2 million tonnes of green ammonia annually.

Additionally, ACWA Power’s second green hydrogen project in Uzbekistan is underway, with the first phase set to produce 3,000 tonnes per year, with plans for further expansion.

Read: Saudi’s ACWA Power inks $4bn green hydrogen deal with Egypt

In recent news, Dubai Electricity and Water Authority and ACWA Power secured financing for the 180 million imperial gallons per day (MIGD) Hassyan seawater desalination plant.

The plant is the world’s largest project of its kind using reverse osmosis (RO) technology under the Independent Water Producer (IWP) model, with an investment of $919.5m (Dhs3.38bn).

Read: DEWA, ACWA Power secure financing for Hassyan desalination plant