ACWA Power has signed an MOU with the Industrial Development Corporation of South Africa (IDC), a government owned development finance institution, to explore the development of green hydrogen in South Africa. This is the first agreement of its kind between them. It will bring a potential $10 billion of development.
ACWA Power will function as the developer for green hydrogen and its derivatives in South Africa, with the IDC acting as co-developers and equity partner in the proposed projects. Both parties will carry out a feasibility study, cooperate, jointly develop and coinvest in projects in the green hydrogen value chain in South Africa.
South Africa has a net zero target for 2050 and plans to become a significant producer and exporter of green hydrogen and its derivatives. In line with this, the South African Government has mandated the IDC to lead the development and commercialisation of the green hydrogen economy. The IDC, in partnership with the Green Hydrogen Panel, is in the process of finalising the South African Green Hydrogen Commercialisation Strategy (GHCS).