Page 15 - AfrElec Week 44 2022
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AfrElec HYDROGEN AfrElec
South Africa’s IDC signs MoU
with ACWA Power for local green
hydrogen development project
SOUTH AFRICA RIYADH-BASED utility developer Acwa concentrated solar power (CSP) plants in South
Power and South Africa’s Industrial Develop- Africa, Energy Voice reports.
ment Corporation (IDC), a government-owned South Africa has a net-zero target for 2050
development finance institution, have agreed to and plans to become a significant producer and
collaborate on green energy projects in South exporter of green hydrogen and its derivatives.
Africa potentially worth $10bn. The government has mandated the IDC to lead
The partnership, outlined in a memorandum the development and commercialisation of the
of understanding (MoU), was established dur- green hydrogen economy.
ing the state visit of South Africa’s President Cyril The state-backed company, in partner-
Pamaphosa to Saudi Arabia, The National News ship with the Green Hydrogen Panel, is now
(Saudi Arabia) reports. Acwa is a leading Saudi finalising the South African Green Hydrogen
developer, investor and operator of power gen- Commercialisation Strategy (GHCS). The IDC
eration, water desalination and green hydrogen is currently supporting project development
plants worldwide. in the green hydrogen value chain, including
Acwa Power will function as a developer, the mobility projects, green hydrogen and ammo-
company said in a statement on October 20, with nia production.
IDC acting as co-developer and equity partner IDC chief operating officer Joanne Bate said
in proposed projects on green hydrogen and its green hydrogen would bring “substantial value
derivatives. and benefits” to South Africa. “The green hydro-
According to the statement, both parties will gen economy presents new economic, skills,
carry out a feasibility study, potentially cooper- employment and community opportunities for
ate, jointly develop and co-invest in projects in the country.”
the green hydrogen value chain in South Africa. The global hydrogen industry is expected to
“With tangible renewable energy develop- be worth $183bn by 2023, up from $129bn in
ment commitments in South Africa already 2017, says financial data analytics provider Fitch
contributing to the country’s clean energy goals, Solutions. French investment bank Natixis esti-
the signing of the MoU with the IDC for the mates that investment in hydrogen will exceed
development of green hydrogen is a significant $300bn by 2030.
step towards further investing in diversifying the According to the International Renewable
country’s energy mix and accelerating its green Energy Agency (IRENA), hydrogen has the
economy,” said Paddy Padmanathan, vice chair- potential to cover 12% of global energy demand
man and chief executive of Acwa Power. and cut 10% of carbon dioxide emissions by
ACWA and IDC have previously worked 2050, writes The National News.
together on the Bokpoort and Redstone
Week 44 02•November•2022 www. NEWSBASE .com P15
