BNR – The French carbon-neutral energy service provider, ENGIE, has struck a deal with Saudi Arabia’s Public Investment Fund for developing a green hydrogen supply chain. The contract was a memorandum of understanding.

The contract rolls the red carpet for both signatories to discover chances together. The two sides may also establish initiatives for green hydrogen exportation in Saudi Arabia and explore derivatives output for the supply plan.

The signatory from the French service giant ENGIE was Frederic Claux, managing director, of Flexible Generation and Retail, AMEA, while the signatory from the Public Investment Fund of Saudi Arabia was Yazeed Alhumied, deputy governor and head of MENA Investments from PIF.

Energy Transition in Saudi Arabia

Claux stated that the deal will promote tactical collaboration in improving green hydrogen initiatives in the country. “We, at ENGIE, are proud to contribute to driving the energy transition in the kingdom,” he said. Furthermore, Claux said that they were joyful that they were accomplishing their hopes and objectives in the green hydrogen industry.

He also states that the collaboration with Saudi Arabia will lay out a solid basis for the sector. It will allow the country to be among the top suppliers in the world when it comes to green hydrogen.

Partnership to Develop Green Hydrogen Opportunities

Both parties are going to discover and assess the possibility of partnership in developing opportunities. Also, they will co-define a plan to better deal with the worldwide market and guarantee producer-buyer agreements (offtake).

The deal intends to allow ENGIE to work side by side with Saudi Arabia’s Public Investment Fund. Together, they will intensify efforts towards expanding the country’s economy, as part of the goals of the Saudi Vision 2030. It will also improve the country’s role in the international arena as a competitor in the production and exportation of hydrogen.