Italy and Saudi Arabia Forge Renewable Energy Cooperation Agreement
January 15, 2025
11:52 AM
Reading time: 3 minutes

Italy and Saudi Arabia have taken a significant step towards advancing their collaboration in the energy sector, with a new cooperation agreement focusing on renewable energy, hydrogen, and carbon capture. Signed on Tuesday in Riyadh by Italy’s Energy and Environment Minister Gilberto Pichetto Fratin and Saudi Energy Minister Abdulaziz Bin Salman Al Saud, the agreement aims to strengthen bilateral efforts in clean energy development.
The five-year deal emphasizes the production of low-carbon hydrogen, green ammonia, and the critical practice of carbon capture and storage (CCS). Saudi Arabia’s significant investments in green hydrogen, especially through its Public Investment Fund (PIF), which is set to invest $10 billion, highlight the country’s commitment to becoming a global leader in renewable energy production.
“This agreement marks the beginning of concrete projects that will boost energy relations between Italy and Saudi Arabia,” Minister Pichetto said. He also highlighted Italy’s strategic location as a potential energy hub for the Mediterranean and Europe. With its advanced technology and infrastructure, Italy could become a key player in facilitating energy routes connecting the Middle East with Europe.
The new cooperation builds on ongoing discussions between the two nations regarding investments in energy, oil and gas, and mining sectors. The energy agreement aims to create synergies for low-carbon energy solutions, ultimately fostering growth in clean technologies.
Additionally, oil markets are adjusting to the latest insights from the Energy Information Administration’s Short-Term Energy Outlook. As global oil production continues to grow, the forecast suggests weaker oil prices ahead due to rising output from OPEC and non-OPEC countries. Despite this, Brent crude prices rebounded slightly, rising above $80 per barrel, driven by sanctions on Russian oil exports, which may reduce global supply and affect pricing.