Saudi utility developer Acwa Power has signed a deal with South Korea’s Posco Holdings to develop hydrogen applications for its carbon-heavy industry work.
The agreement will see both firms explore the production of green hydrogen and green ammonia, with the aim to eventually decarbonise the Posco’s power generation and steel manufacturing processes.
“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,” its chief executive Paddy Padmanathan said.
Posco Group earlier said it wants to produce 500,000 tonnes of hydrogen by 2030. As of 2021, the company has a capacity to produce 42.9 million metric tonnes of steel, making it the sixth largest steel product in the world, and the biggest in South Korea.
Aside from steel making, the group is also involved in other critical industries such as construction, energy, and food.
“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,” Acwa Power’s Padmanathan said.
The Saudi firm is also developing a large-scale green hydrogen project in Saudi Arabia, which will be able to produce 1.2 million tonnes of green ammonia when operational in 2026.
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