Saudi Arabia sees Italy as partner of choice on green products

Saudi Arabia regards Italy as a useful ally to help it deliver green energy and fuels – including hydrogen produced with renewable power – to Europe, the kingdom’s investment minister said on Thursday.

Under its multi-year energy strategy, Saudi Arabia aims to grow its production capacity for low-carbon products to diversify away from its traditional oil and gas business.

However, since the market for low and zero-carbon hydrogen is still at an initial stage, the country is looking for allies who could facilitate the export of these products.

“Saudi Arabia is investing in … blue and green hydrogen without guarantees that there will be off-takers… Italy is a partner of choice for bringing green products to the European continent,” Minister Khalid al-Falih said, speaking at a business conference in Milan.

Green hydrogen is produced by splitting water through electrolysis using renewable energy.

Blue hydrogen, which is often presented as a transitional approach until green hydrogen output can be scaled up, is made from natural gas but with carbon dioxide (CO2) emissions captured and then injected into underground or subsea storage.

Al-Falih said that investing in ports and pipeline networks to bring green energy and products to Europe was an imperative and added that he would travel to other European countries, including Germany, to find customers and partners.

The Italian government signed in May an agreement to cooperate with Germany and Austria on the development of a pipeline to transport hydrogen from the southern Mediterranean to northern Europe.

The European Union aims to produce 10 million metric tons and import 10 million tons of green hydrogen by 2030 in a bid to replace fossil fuels, which emit planet-warming gases when burned.

Read: Saudi Arabia amends investment law to boost FDI