Saudi Arabia and the Netherlands to Collaborate on Green Energy
Saudi Arabia and the Netherlands recently signed an MoU to collaborate on green energy and hydrogen projects. Due to this agreement, the Netherlands could be the primary destination for the transportation of hydrogen derived from renewable energy from Saudi Arabia to Europe. This agreement was disclosed by Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, at the World Hydrogen Summit in Rotterdam.
According to the Minister, Rotterdam is set to become the Kingdom’s main hub in Europe, with Germany joining as a partner in the green hydrogen trade. In a further series of tweets released by the Netherlands government, it was stated that the agreement is expected to boost cooperation on energy issues and improve energy security. The tweets also highlighted that countries that have abundant sun, wind, and space generally have great potential for hydrogen production. Thus, with the agreement with Saudi Arabia, the Netherlands will likely have the expertise and resources to effectively transition to clean energy. More importantly, hydrogen production will present more opportunities for the Netherlands to reduce its dependence on fossil fuels and democratize energy supplies.
However, this agreement does not mark the Netherlands’ first green energy agreement. For instance, Portugal and the Netherlands entered into an agreement to strengthen their bilateral cooperation on green hydrogen. Under the MoU, both countries committed themselves to taking active steps towards achieving the development of green energy in Europe, primarily through renewable sources.
Saudi Arabia has also been making similar arrangements with other countries. For instance, late last year, Saudi Arabia signed MoUs on hydrogen with China. The MoUs were primarily targeted at the encouragement of cooperation on hydrogen. Also, in March, the Shoura Council in Saudi Arabia approved a draft MoU between the Saudi Arabian Ministry of Energy and the National Energy Administration of China. The draft was centered on the field of clean energy, and it marked the beginning of a series of collaborative actions between the energy ministries of both countries.
The Saudi Arabian Renewable Energy Agenda
Saudi Arabia has been following a consistent path of renewable energy investment in the past few years. This is largely due to the country’s quest for economic diversification. Also, Saudi Arabia seeks to contribute its quota towards the battle against climate change. Thus, it is only rational that the country’s government makes moves to reduce its dependence on crude oil.
In line with its renewable energy agenda, Saudi Arabia has been initiating plans to execute some of the world’s largest clean energy projects. For instance, the NEOM green hydrogen project is set to become the world’s largest utility-scale hydrogen facility fully powered by renewable energy. The project is valued at $8.4 billion, and it will be solely focused on the production of clean hydrogen. Projects like these demonstrate Saudi Arabia’s commitment to reducing its carbon footprint.
Conclusion
With Saudi Arabia’s renewable energy agenda currently in full force, the country is likely to negotiate further agreements with other countries to boost its production of green energy, specifically clean hydrogen.
Last Updated on 9 months by News Editor
