ACWA Power has signed a memorandum of understanding with POSCO Holdings, the holding company of the POSCO Group in South Korea.
The deal would involve the joint development of green hydrogen and its derivatives, such as green ammonia, in order to decarbonize POSCO Group’s power generating and steel manufacturing operations, as well as serve POSCO Group’s other Korean customers.
“With tangible project commitments in Saudi Arabia and Oman, 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,” said Paddy Padmanathan, Vice Chairman and Chief Executive Officer at ACWA Power
Green hydrogen and ammonia created by the partners through additional green field investments would help POSCO Group fulfill its ambitious worldwide hydrogen production goals of 500,000 tons by 2030. POSCO Group’s output will be used in a variety of industries, including the company’s own power generation needs, construction, and energy, as well as to help other South Korean industrial end-users.
