ACWA Power and the Industrial Development Corporation of South Africa (IDC) signed an extensive MoU exploring a partnership in developing green hydrogen and its derivatives in the Republic of South Africa.
This is the first agreement between ACWA Power and the IDC, but the parties have previously collaborated for equity in a renewable energy plant in South Africa. The potential value of this MoU is estimated at US$10 billion. ACWA Power will function as the developer for green hydrogen and its derivatives in South Africa, with the IDC acting as co-developer and equity partner in the proposed projects.
Both parties will carry out a feasibility study, potentially cooperate, jointly develop and co-invest in projects in the green hydrogen value chain in South Africa. This MOU with ACWA Power will support the implementation of the GHCS and contribute towards the country’s green hydrogen production targets.
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 finalising the South African Green Hydrogen Commercialisation Strategy (GHCS).
Paddy Padmanathan, CEO of ACWA Power, said, “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.”
Joanne Bate, Chief Operating Officer, IDC, said, “ The green hydrogen economy presents new economic, skills, employment and community opportunities for the country.”