ACWA Power is pioneering green hydrogen with the world’s largest project in NEOM, Saudi Arabia. It’s also the world’s largest private water desalination provider and a key player in renewable energy, contributing to Saudi Vision 2030. The company is known for innovative financing, strategic partnerships, and sustainability-focused projects.
With your extensive experience in Saudi Arabia’s market, particularly in water management, oil and gas, and technology, how has your background shaped your strategy as Executive Director of Business Development – Global Green Hydrogen at ACWA Power?
Abdulrahman Al Abdulaal: My journey to ACWA Power two years ago was greatly influenced by my work in critical areas like water desalination. Desalinated water, as you know, is essential for green hydrogen production, unlike traditional hydrogen sources from hydrocarbons. My role here was to add value to an industry that, at the time, lacked established strategies, not just in the GCC but globally.
When I assumed this role, my priority was to create a strategic alignment between industry and government. This alignment is crucial because the cost of desalinated water directly impacts the cost of electricity and hydrogen. Working closely with the government, we’ve established a framework that supports both the private sector and national objectives, contributing significantly to the Vision 2030 goals.
You’ve emphasised the importance of aligning private companies with government strategies. What advice would you give to private sector companies aiming to collaborate effectively with the government?
Abdulrahman Al Abdulaal: It’s important for private companies to recognise that this sector is not about one side dominating; it’s about collaboration. The success of Saudi Arabia’s green hydrogen initiatives will be a model not just for the GCC but for the world.
Working in this industry requires operating within a solid ecosystem where both private and public sectors contribute. The value chain for green hydrogen—from land allocation to renewable power generation and eventual export—requires close cooperation between all parties involved. Saudi Arabia’s approach is export-focused, especially in the initial phases, to meet the growing international demand for green energy.
ACWA Power is responsible for several large-scale projects. How do you ensure the efficiency and sustainability of the technologies you use?
Abdulrahman Al Abdulaal: At ACWA Power, our business model relies heavily on partnerships. When we embark on a project, we first look for partners to determine who can add value. For instance, in the green hydrogen sector, up to 70% of the cost depends on the price of renewable electricity. Therefore, we position ourselves as technology-agnostic, always seeking the best solutions to reduce costs.
Our success lies in this collaborative approach, where we work closely with partners from the initial stages through to the end user, ensuring every aspect of the project is optimised. This model has enabled ACWA Power to expand its presence globally, making us a preferred partner in green hydrogen projects.
The NEOM Green Hydrogen project is particularly significant, with a total investment of $8.5 billion. Can you elaborate on the challenges you anticipate in this ambitious project?
Abdulrahman Al Abdulaal: The NEOM Green Hydrogen project is indeed a challenging endeavour involving the complex integration of various technologies and a large-scale renewable energy infrastructure. One of the key challenges is the lack of reference projects to learn from, making this a pioneering effort. We are setting the benchmark for efficiency and performance in this sector.
Another challenge is ensuring timely delivery, especially in the light of supply chain disruptions during the COVID-19 pandemic. However, we have overcome these obstacles by implementing innovative solutions and constantly challenging ourselves to improve. The project’s success hinges on efficient execution, and we are on track to achieve our targets, with over 47% of the construction already completed.
Recently, ACWA Power signed a purchase agreement for three new solar PV projects in Saudi Arabia, bringing the total number of projects to 14. How do these contribute to Saudi Vision 2030?
Abdulrahman Al Abdulaal: These projects are part of a larger government program aimed at significantly increasing renewable energy capacity in Saudi Arabia. ACWA Power has been entrusted with a significant role in implementing this strategy, and we are committed to delivering on these ambitious targets. The government has set clear goals, and we are focused on executing them efficiently to support the Vision 2030 objectives.
ACWA Power is positioning itself as a global leader in green hydrogen. What future projects or expansions can we expect?
Abdulrahman Al Abdulaal: We have an extensive pipeline of projects, some of which have yet to be announced. However, I can share that we are closing in on a green hydrogen project in Uzbekistan aimed at producing green urea for the fertiliser industry. This project is particularly exciting as it marks our expansion beyond the Middle East.
We are also exploring significant opportunities in Egypt, Morocco, and Tunisia. These large-scale projects will further solidify our position as a leader in green hydrogen production, aligned with our strategy to support global green energy transitions.
