ACWA Power, Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, and South Africa's government-owned Industrial Development Corporation of South Africa (IDC) have signed an extensive memorandum of understanding (MOU) exploring a partnership in the development of green hydrogen and its derivatives in the Republic of South Africa.

This agreement coincided with the state visit of South African President Cyril Ramaphosa to the Kingdom of Saudi Arabia. The agreement was digitally signed with agreement copies exchanged at a gathering attended by executive dignitaries, says ACWA in a statement seen by Kallanish.

"This is 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. The potential value of this MOU is estimated at $10 billion. 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," ACWA adds.

As a company that is driving energy transition, ACWA Power is proud to work closely with the IDC with whom we share a robust working history, and today we are delighted to take our collaboration further. I am confident that our expertise in developing mega-scale green hydrogen projects in other geographies will enable us to successfully create a new avenue of sustainable energy generation, one that will pave the path to further progress," says ACWA Power chief executive Paddy Padmanathan.

South Africa has a net-zero target for 2050 and plans to become a significant producer and exporter of green hydrogen and its derivatives, while the government has mandated the IDC to lead the development and commercialisation of the green hydrogen economy.