This partnership, which could yield projects worth up to $10bn, coincides with the state visit of the South African President Cyril Ramaphosa to the Kingdom of Saudi Arabia.
The agreement was digitally signed by Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power; Clive Turton, Chief Investment Officer of ACWA Power; Rian Coetzee, Head of Industry Planning and Project Development at IDC; and Russell Wallace, Manager of Legal Services at IDC, with agreement copies exchanged at a gathering attended by executive dignitaries.
It marks the first agreement of its kind between ACWA Power and the IDC, but the parties have previously collaborated for equity in a renewable energy plant in South Africa.
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.
Paddy Padmanathan, CEO and Vice Chairman of ACWA Power, said, “With tangible renewable energy development commitments in South Africa already contributing to the country’s clean energy goals, the signing of the MoU … is a significant step towards further investing in diversifying the country’s energy mix and accelerating its green economy.”
This month ACWA Power has also signed an MoU with Korea Electric Power Corporation (KEPCO) to explore green hydrogen/ ammonia projects in the Middle East, and other regions, to decarbonise KEPCO’s operations in South Korea.
The company intends to use the end product to operate its power plants in South Korea, on the proviso that KEPCO’s generation companies offtake the green ammonia from the potential project.
KEPCO is set to rely increasingly on green ammonia produced by green hydrogen for power generation purposes and targets the utilisation of 5-10 million tonnes of green ammonia by 2030.
In another tie up last month, ACWA Power will develop a 300,000 m3/d seawater reverse osmosis plant (SWRO) in Grande Côte, Senegal.
In line with Senegal’s Gas-to-Power strategy, which aims to increase the country’s energy independence, reduce the cost of electricity, and provide universal access to electricity, the development of the new facility will help cut Senegal’s GHG emissions by around a quarter by 2030.
The NEOM Green Hydrogen Company, a joint venture with ACWA Power, NEOM and Air Products, 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.