ACWA Power has signed up to work on green hydrogen plans in South Africa, which may be worth up to $10 billion.
The agreement, with Industrial Development Corp. (IDC), was signed in Saudi Arabia during President Cyril Ramaphosa’s visit.
ACWA will act as a developer of green hydrogen and its derivatives in South Africa, it said. IDC will act as a co-developer and equity partner. The memorandum of understanding (MoU) will explore the options for such a partnership.
ACWA CEO and chairman Paddy Padmanathan said there “renewable energy development commitments in South Africa” were already having an impact. Signing the MoU with IDC “is a significant step towards further investing in diversifying the country’s energy mix and accelerating its green economy”.
The two companies will carry out a feasibility study, which may lead to co-operation, joint development and co-investing in South African projects.
ACWA and IDC have previously worked together on the Bokpoort and Redstone concentrated solar power (CSP) plants in South Africa.
Padmanathan said the company’s expertise in large-scale green hydrogen “will enable us to successfully create a new avenue of sustainable energy generation, one that will pave the path to further progress”.
South Africa’s government has mandated IDC to lead its plans for green hydrogen. The state-backed company is, with the Green Hydrogen Panel, finalising the South African Green Hydrogen Commercialisation Strategy (GHCS).
IDC COO Joanne Bate said green hydrogen would bring “substantial value and benefits” to South Africa. “The green hydrogen economy presents new economic, skills, employment and community opportunities for the country.”
The South African company is supporting various projects in green hydrogen, including ammonia and mobility projects.
ACWA is also involved in green hydrogen plans in Saudi Arabia, at the Neom project. It has also signed up to work in Oman.