Saudi developer ACWA Power has signed a memorandum of understanding with Posco Holdings for the joint development of green hydrogen and its derivatives to decarbonise Posco Group’s activities.
Output will be used in applications across diverse industries including Posco Group’s own power generation needs and steelmaking, as well support other industrial off-takers in South Korea.
The green hydrogen and derivative products will be used to decarbonise Posco’s power generation and steel manufacturing processes as well as supply other South Korean clients of Posco.
ACWA Power vice chairman and CEO Paddy Padmanathan said: “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.”
Green hydrogen and ammonia produced by the partners through new green field investments will support to meet Posco Group’s targets to produce 500,000 tonnes of hydrogen globally by 2030.
As of 2021, Posco was the sixth largest steel producer in the world and the largest in its home country of South Korea.
ACWA Power, alongside Saudi Arabia’s NEOM and Air Products, is developing the first at-scale green hydrogen project in Saudi Arabia.
When complete in 2026, the project will produce 1.2 million tonnes of green ammonia per year.