Italy and Saudi Arabia signed a cooperation agreement in the energy sector on Tuesday, focusing on renewable energy, hydrogen, and carbon capture. The deal was announced by Italian Energy and Environment Minister, Gilberto Pichetto Fratin, during his visit to Riyadh.
Minister Pichetto Fratin and Saudi Energy Minister Abdulaziz Bin Salman Al Saud signed the agreement at the Future Minerals Forum in Riyadh.
The five-year agreement aims to strengthen cooperation between the two countries in hydrogen production, renewable energy, and carbon capture and storage (CCS). The deal will emphasize clean energy and technology, including low-carbon hydrogen and green ammonia, according to the Italian government.
Despite the challenges facing the green hydrogen industry, Saudi Arabia’s Public Investment Fund (PIF) is reportedly planning to invest $10 billion in green hydrogen.
Minister Pichetto Fratin highlighted Italy’s potential to become an energy hub connecting the Middle East and Europe, thanks to its strategic location in the Mediterranean and its strong connections to the European market.
“We are well aware of Saudi Arabia’s capability in producing renewable hydrogen and low-carbon derivatives like ammonia,” he added.
The agreement marks the beginning of efforts to develop concrete projects and strengthen relations between Italy and Saudi Arabia.
Earlier discussions between the two countries also included potential partnerships and investments in the oil, gas, and mining sectors.
At the end of 2023, Italy and Saudi Arabia explored opportunities for joint investments in the energy sector, particularly in critical raw materials in Italy, Saudi Arabia, and third countries like those in Africa. Italian Industry Minister Adolfo Urso confirmed these talks, which also covered investments in sectors such as oil and gas, automotive, defense, green technologies, hydrogen, and aerospace.
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