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Acwa Power to assume PIF hydrogen role

26 November 2024

Saudi-listed utility developer Acwa Power is understood to be assuming the mandate to deliver, operate and co-invest in future green hydrogen projects in Saudi Arabia, according to an industry source.

This follows the cancellation in October of the planned launch of Energy Solutions Company (ESC), a Public Investment Fund (PIF) subsidiary, which was expected to become Saudi Arabia's national champion in low-carbon hydrogen production, storage, transportation and marketing services and solutions.

MEED reported in July that in addition to driving the development of the green hydrogen market in the kingdom, ESC will also co-invest with Saudi Aramco in the state energy giant's blue hydrogen developments

"Acwa Power will assume the mandate to be the partner and co-investor for all upcoming green hydrogen projects in Saudi Arabia, which makes sense given it is already implementing the first green hydrogen and ammonia project in the kingdom," notes a source familiar with the matter.

This development closely resembles Acwa Power's role in bilateral renewable energy projects in the kingdom, which is being procured via the PIF's Price Discovery Scheme.  

Acwa Power said it cannot comment on rumours or speculations.

PIF is understood to own a 44% stake in Acwa Power, down from 50% before Acwa Power's 2021 initial public offering.

There are at least three green hydrogen projects in the conceptual design or study stage in Saudi Arabia.

All three have PIF as their main partner or one of their partners.

These projects include those planned by teams separately led by France's Engie, Japan's Marubeni and South Korea's Posco. 

Acwa Power, in partnership with Saudi gigaproject developer Neom and the US' Air Products, is developing the $8.4bn integrated green hydrogen and ammonia production facility in Neom.

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Jennifer Aguinaldo

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