Saudi develop, investor and operator, ACWA Power has said the signed Memorandum of Understanding (MoU) with POSCO Holdings, the holding company for South Korea’s POSCO Group, seeks to produce green hydrogen and ammonia to support POSCO Group’s targets of producing 500,000 tonnes of hydrogen globally by 2030.

H2 View understands the hydrogen and ammonia produced is set to be used in across industry including its own power generation, construction, energy, and support other industrial off-takers in South Korea.

Paddy Padmanathan, Vice-Chairman and CEO of ACWA Power, said, “ACWA Power is at the forefront of scaling up green hydrogen, whose output, ammonia, will lead to the outcome of decarbonising entire industries, including hard to abate industrial activities like steel manufacturing.

“The partnership with POSCO Holdings, a giant in their field, represents our firm commitment towards working with like-minded partners to support global decarbonisation efforts, and the critical and timely achievement of Net Zero targets as per the timeframes set by the Paris Agreement.

“This collaboration is yet another significant step forward in ensuring a cleaner, greener future for all, one that is going to be achieved through transformative clean energy solutions, and we are indeed proud of our role in leading the change and driving energy transition globally.”

The South Korean deal comes soon after ACWA Power signed a joint development agreement (JDA) with Air Products and OQ towards a ‘multibillion-dollar’ investment in a world-scale green hydrogen-based ammonia production facility in Oman, in May (2022).

Read more: JDA signed for multibillion-dollar hydrogen-based green ammonia project in Oman