An extended Memorandum of Understanding (MoU) examining a collaboration in the development of green hydrogen and its derivatives in the Republic of South Africa was signed by ACWA Power and the Industrial Development Corporation of South Africa (IDC).
The parties have previously worked together for equity in a renewable energy facility in South Africa, but this is the first arrangement of its kind between ACWA Power and the IDC. This Memorandum of Understanding might be worth $10 billion. Green hydrogen and its derivatives will be developed in South Africa by ACWA Power, with the IDC serving as a co-developer and equity partner in the proposed projects.
South Africa intends to become a large producer and exporter of green hydrogen and its derivatives, with a net zero aim by 2050. As a result, the government has given the IDC the authority to guide the creation and expansion of the green hydrogen economy. The South African Green Hydrogen Commercialization Strategy is being finalized by the IDC in collaboration with the Green Hydrogen Panel (GHCS).
The feasibility study will be conducted by both parties, who may also work together to develop and fund initiatives related to South Africa’s green hydrogen value chain. The GHCS will be implemented with the help of this MOU with ACWA Power, which will also help the nation meet its goals for producing green hydrogen.