Saudi-German Energy Dialogue

Hydrogen trade continued to be the dominating topic of the Saudi-German Energy Dialogue in 2023. In February, a hydrogen off-taker conference, organised by the Energy Dialogue, took place in Düsseldorf. A delegation of Saudi companies with plans to export hydrogen and the Ministry of Energy met potential German off-takers. Next to business-to-business discussion, the delegation visited the ThyssenKrupp steel site in Duisburg, which will start switching to hydrogen by the end of this decade. This successful off-taker event laid the ground for deepened discussion between companies over the course of the year and the format was increasingly also used in the context of other energy partnerships and dialogues. 

In May, the 2nd Saudi-Germany Energy Day was held in Berlin. Next to hydrogen, climate cooperation emerged as a topic of collaboration. State Secretary Philipp and Mohammed Albrahim, Assistant Minister of Oil and Gas Affairs, gave opening remarks followed by three lively panel discussion on clean hydrogen, supply chain resilience, and climate action respectively. At the sidelines of the Energy Day, a high-level discussion between Minister Habeck, Abdulaziz bin Salman Al Saud, Energy Minister, and numerous CEOs from both countries took place on the topic of hydrogen trade. The mismatch between the desire from the Saudi side to sign long-term (>15 years) contracts and the current hesitance by offtakers to do so due to the uncertainty about the future hydrogen market remains a key challenge. 

The bilateral hydrogen collaboration was further strengthened through a webinar on certification in August. Guidehouse presented an overview of requirements for hydrogen, while the Saudi side provided insights into their certification scheme under development. Both parties agreed to work together on the mutual recognition of hydrogen certification. 

Climate action took centre stage during the bilateral workshop on climate modelling in Berlin in September. Researchers from Saudi institutions discussed with leading experts from Germany different approaches towards net-zero modelling and the role of carbon capture, storage and utilisation (CCUS). There are numerous opportunities for cooperation between Saudi Arabia and Germany when modelling transformation pathways. Germany has over 30 years of experience, while Saudi-Arabia is still in its early stages. 

Lastly, MENA climate week, the major regional event in the run-up to COP28, was held in Riadh in November. The Energy Dialogue used this opportunity for a delegation visit to meet local actors in the climate space such as Think Tank KAPSARC and discuss hydrogen trade with the Ministry of Energy and other main stakeholders such as the Public Investment Fund, Saudi’s sovereign wealth fund.