ACWA Power announced that it has signed a memorandum of understanding with POSCO Holdings, the holding company of South Korea’s POSCO Group.

The agreement will involve the joint development of green H₂ and its derivatives such as green ammonia, to decarbonize POSCO Group’s power generation, and its steel manufacturing processes, along serving other Korean clients of POSCO Group.

Green H₂ and ammonia produced by the partners through new green field investments will support to meet POSCO Group’s ambitious targets to produce 500,000 tons of H₂ globally by 2030. POSCO Group’s output will be used in applications across diverse industries including the company’s own power generation needs, construction, energy and support other industrial off-takers in South Korea.

As of 2021, POSCO, the steel making company of POSCO Group, has the capacity to produce 42.9 MM metric t of steel, making it 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 H₂ project in Saudi Arabia. When complete in 2026, the project will produce 1.2 MMtpy of green ammonia for the purposes of decarbonizing industries, making it the world’s largest facility of its kind.

“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 decarbonizing entire industries, including hard to abate industrial activities like steel manufacturing,” said Paddy Padmanathan, Vice Chairman and Chief Executive Officer at ACWA Power. “The partnership with POSCO Holdings, a giant in their field, represents our firm commitment towards working with like-minded partners to support global decarbonization 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.”