Saudi Arabia’s ACWA Power and the Industrial Development Corporation of South Africa (IDC) have signed an extensive memorandum of understanding (MoU) exploring a partnership in the development of green hydrogen and its derivatives in the Republic of South Africa.
Under the MoU with the potential values estimated at $10 billion, ACWA Power will function as the developer for green hydrogen and its derivaties and the IDC will act as co-developer and equity partner in the proposed projects.
“With tangible renewable energy development commitments in South Africa already contributing to the country’s clean energy goals, the signing of the MoU with the IDC for the development of green hydrogen is a significant step towards further investing in diversifying the country’s energy mix and accelerating its green economy “ , said Paddy Padmanathan , CEO and Vice Chairman of ACWA Power.
South Africa has a net zero target for 2050 and plans to become a significant producer and exporter of green hydrogen and its derivatives. Accordingly, the government has mandated the IDC to lead the development and commercialisation of the green hydrogen economy.
The IDC, in partnership with the Green Hydrogen Panel, is in the process of finalising the South African Green Hydrogen Commercialisation Strategy (GHCS).
ACWA Power, in a joint venture with NEOM and Air Products, formed NEOM Green Hydrogen Company which is developing the ‘world’s largest green hydrogen project’ in Saudi Arabia. When commissioned in 2026, it will produce up to 650 tonnes per day of green hydrogen. By that date, the project will mitigate the impact of 3 million tonnes of carbon dioxide per year.
In addition, ACWA Power, as part of a joint venture, also recently signed a joint development agreement towards a multi-billion-dollar investment in a world-scale green hydrogen-based ammonia production facility powered by renewable energy in Oman; as well as two Memoranda of Understanding in South Korea with different industrial partners.