ACWA Power, IDC to explore green H2 partnership in S Africa
ACWA Power, the IDC sign green hydrogen MoU. Image source: ACWA Power (www.acwapower.com)
Saudi investor in water and power plants ACWA Power (TADAWUL:2082) is looking into South Africa’s green hydrogen landscape, after securing a local partner for the development of projects that could be worth USD 10 billion (EUR 10.2bn), the company said in an announcement.
The energy and water desalination enterprise on Thursday signed a memorandum of understanding (MoU) with the Industrial Development Corporation of South Africa (IDC), a government-owned development finance institution, to explore a partnership and realise actions in the industry of green hydrogen and its derivatives in South Africa.
Per the agreement, ACWA Power will serve as the developer of green hydrogen and derivatives in South Africa, while the IDC will act as co-developer and equity partner in the proposed projects, the Saudi partner said.
The allies will carry out a feasibility study, potentially cooperate, jointly develop and co-invest in the South Africa’s green hydrogen value chain. Their potential multi-billion-dollar development would support the South African Green Hydrogen Commercialisation Strategy (GHCS), which the IDC is in the process of finalising in partnership with the Green Hydrogen Panel, according to the announcement.
At present, ACWA Power operates two concentrated solar power plants in South Africa. Its MoU with the IDC is their first agreement encompassing green hydrogen, having previously partnered on renewable energy.
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