ACWA Power, the Saudi-based developer and operator of power, water and green hydrogen plants worldwide announced on Monday that it has signed an agreement with state-owned Industrial Development Corporation of South Africa (IDC) to explore green hydrogen and derivative projects in Africa’s biggest economy.

The potential value of the MoU is estimated at $10 billion, ACWA Power said in a press statement.

The statement said ACWA Power will function as the developer with the IDC acting as co-developer and equity partner in the proposed projects.

IDC, which has the government mandate to lead the development and commercialisation of the green hydrogen economy, is in the process of finalising the South African Green Hydrogen Commercialisation Strategy (GHCS) in partnership with the Green Hydrogen Panel.

ACWA Power currently operates two solar energy plants in South Africa at Bokpoort and Redstone based on concentrated solar power technology.

The NEOM Green Hydrogen Company, a joint venture with ACWA Power, NEOM and Air Products, is developing the world’s largest green hydrogen project in Saudi Arabia. When commissioned in 2026, it will produce up to 650 tonnes per day of green hydrogen.

(Writing by Anoop Menon; editing by Seban Scaria)