Saudi energy company, ACWA Power and POSCO Holdings, the holding company of steel producer, POSCO Group, have today (19th July) signed a Memorandum of Understanding (MoU) for the joint development of green hydrogen and its green ammonia derivatives.

The green ammonia will be used in power generation and steelmaking, this alongside the hydrogen produced by the partners will support to meet POSCO Group’s targets to produce 500,000 tonnes of hydrogen globally by 2030, while

Paddy Padmanathan, Vice Chairman and Chief Executive Officer at ACWA Power, 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.”

“This collaboration is yet another significant step forward in ensuring a cleaner, greener future for all, one that is going to be achieved through transformative clean energy solutions, and we are indeed proud of our role in leading the change and driving energy transition globally.”

The project is scheduled for completion in 2026 and will produce 1.2m tonnes of green ammonia per year.