- Italy and Saudi Arabia signed a five-year agreement to strengthen energy cooperation, focusing on renewable hydrogen, reducing methane emissions, and capturing carbon.
- The deal positions Italy as a key entry point for Saudi-made hydrogen and ammonia to reach European markets more competitively than alternatives from the North Sea.
Italy and Saudi Arabia have signed a landmark agreement to enhance their energy cooperation, focusing on the potential supply of Saudi-produced hydrogen to Europe. The memorandum of understanding (MoU), which is set to last for five years, was officially signed in Riyadh recently during a meeting between Italy’s Energy and Environment Minister, Gilberto Pichetto Fratin, and his Saudi counterpart, Prince Abdulaziz bin Salman Al-Saud.
The agreement outlines collaborative efforts across a range of energy sectors, specifically emphasising renewable energy, methane emissions reduction, and the development of low-emission hydrogen and ammonia. Furthermore, it also includes initiatives for carbon capture and storage systems, as well as enhancing power interconnections between both nations. These areas are part of broader international efforts to transition to cleaner energy sources and combat climate change.
One of the key highlights of the MoU is Italy’s potential role as a gateway for Saudi-produced renewable hydrogen and ammonia to reach European markets. Minister Pichetto Fratin emphasised that Italy’s geographical proximity to Saudi Arabia makes it a more cost-effective and competitive option for transporting hydrogen and ammonia to Europe than alternatives in the North Sea region.
The agreement is part of a growing strategic partnership between Italy and Saudi Arabia, driven by both nations’ ambitions to diversify their energy portfolios and contribute to the global energy transition. Saudi Arabia, rich in fossil fuels, has been making significant strides to shift towards renewable energy sources, including hydrogen, which is in line with its Vision 2030 agenda. This vision seeks to reduce the kingdom’s reliance on oil and establish it as a global leader in clean energy technologies.
Italy, for its part, is keen to bolster its energy security while also advancing its green energy agenda. The country has been actively exploring ways to reduce carbon emissions and enhance its energy infrastructure in preparation for a sustainable future. The collaboration with Saudi Arabia is expected to further strengthen Italy’s role in the European energy landscape, particularly in the hydrogen sector, which is seen as a crucial element in the decarbonization of industries and transportation.
The signing of the MoU marks the beginning of a significant partnership that could have far-reaching implications for energy production and consumption in Europe and globally.