Saudi Arabian independent power producer (IPP) Acwa Power is signing a framework agreement with the Industrial Development Corporation of South Africa (IDC) to produce green hydrogen and its derivatives. Acwa Power wants to invest $10 billion over the next few years in South Africa.
The framework agreement was signed virtually between the officials of the Industrial Development Corporation of South Africa (IDC) and Acwa Power. This was on the sidelines of South African President Cyril Ramaphosa’s recent official visit to Riyadh, Saudi Arabia. Although South Africa’s strategy for developing the green hydrogen industry is still being prepared by the IDC, Saudi Arabian independent power producer (IPP) Acwa Power is already planning to invest $10 billion in it over the next few years.
“With tangible commitments to renewable energy development in South Africa already contributing to the country’s clean energy goals, the signing of the MOU with IDC for green hydrogen development is an important step to further invest in diversifying the country’s energy mix and accelerating its green economy,” says Paddy Padmanathan, Acwa Power’s managing director and vice president.
Co-developing projects with IDC
Acwa Power already has a number of renewable energy assets in operation and under development in South Africa. IPP is involved in the implementation of the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) through the construction of the Bokpoort and Redstone solar thermodynamic power plants with a combined capacity of 150 MWe.
The recently signed framework agreement between IDC and Acwa Power covers the joint development of green hydrogen projects in South Africa. IDC will also act as a financial partner for projects developed by Acwa Power. Like other renewable energy producers, Acwa wants to diversify its activities by investing in the emerging green hydrogen industry and its derivatives.
The company, which also invests in desalination, has already signed agreements for the production of green hydrogen in Oman, Saudi Arabia and South Korea. South Africa thus becomes the first market for Acwa Power’s green hydrogen on the African continent.