ENGIE, the leading provider of low-carbon energy services and solutions for integrated utilities management, has signed a memorandum of understanding (MoU) with the Public Investment Fund (PIF) for the joint development of green hydrogen projects and its derivatives in Saudi Arabia, exploring opportunities that contribute to enhancing the energy transition within the objectives of the Saudi vision 2030.

The MoU was signed by Frederic Claux, Managing Director, Flexible Generation and Retail, AMEA from ENGIE and Yazeed Alhumied, Deputy Governor and Head of Mena Investments from Public Investment Fund, paving the way for the two parties to explore opportunities to jointly develop projects for green hydrogen and derivatives production for export.

Frederic Claux said,” The memorandum of understanding between ENGIE and Public Investment Fund will foster strategic partnership in developing green hydrogen projects in the Kingdom.”

“We, at ENGIE, are proud to contribute to driving the energy transition in the Kingdom and achieving its aspirations and goals in the green hydrogen sector. Our partnership with PIF will contribute to laying robust foundations for the green hydrogen industry, enabling the Kingdom to be one of the top exporters of green hydrogen worldwide,” Claux added.

PIF and ENGIE are to evaluate the feasibility of co-development opportunity. Additionally, the two parties will jointly formulate a strategy to best approach the international market and secure offtake arrangements.

The MoU will enable ENGIE to work closely with PIF in Saudi Arabia in diversifying the Kingdom’s economy and to strengthen its global competitiveness in producing and supplying hydrogen and derivatives.

ENGIE has been present in the region for more than 30 years. ENGIE develops its activities in partnership with Saudi actors on energy production, seawater desalination, district cooling, energy efficiency services and high value-added facilities management. We have 2000 employees and over $7.9 billion of capital investment in the Kingdom.

ENGIE generates 7600 MW of power, equivalent to 10 per cent of the installed capacity of Saudi Arabia and produces 176 MIGD of desalinated water per day, equivalent to 11 per cent of market production. For more information about Engie in Saudi Arabia.

ENGIE is a global reference in low-carbon energy and services. With its 96,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions.

Inspired by its purpose, ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers.

Turnover in 2022: 93.9 billion euros. The group is listed on the Paris and Brussels stock exchanges (ENGI).

Meanwhile the Saudi Arabia’s Public Investment Fund (PIF) lost $11 billion on investment activities in 2022, compared to a profit of $19 billion the year before, the sovereign wealth fund reported on Tuesday.

Despite rapidly expanding its global investment spending in recent years, plummeting global stock and bond prices combined with the implications of the Russia-Ukraine war on the global economy have affected the Saudi wealth fund’s holdings.

The Public Investment Fund evolved from a mainly domestic-focused holding company to a global one in 2016 and has been investing heavily in foreign projects ever since.

The fund currently owns 79 companies — including megaproject NEOM, the Saudi Stock Exchange and new airline Riyadh Air — and has seen its total assets rise to about $778 billion in 2022 from $676 billion the year before, according to data published by the wealth fund’s accounts and acquired by Bloomberg.

Ongoing major deals include a possible merger between the Saudi wealth fund’s LIV Golf league and the United States’ PGA Tour. The merger deal — valued by PGA CEO Ron Price at “north of $1 billion,” according to The Washington Post — would be one of the largest in the sport’s history.

In the United States, the fund manages a $35.6 billion portfolio that includes stakes in firms such as Lucid Group, Activision Blizzard and Uber Technologies, according to regulatory filings for the end of the first quarter, reported Bloomberg.

The PIF, chaired by Saudi Crown Prince Mohammed bin Salman, has been demonstrating more transparency with its accounts as the kingdom works to earn financial trust and soft-power influence on the global stage.