Saudi utility developer ACWA Power has signed an MoU with South Korea's POSCO Holdings to jointly develop green hydrogen and its derivatives such as green ammonia.

Green hydrogen is manufactured utilising renewable energy. Its development is expected to help decarbonise POSCO Group’s power generation and its steel manufacturing processes.

ACWA Power, which is spearheading Saudi Arabia's push into renewable energy projects, earlier this year partnered with the US’ Air Products in the futuristic megacity Neom to produce and supply green hydrogen.

According to energy intelligence group Wood Mackenzie’s projections, the demand for low carbon hydrogen is expected to reach over 600 million tonnes in 2050 from under 1 million tonnes today.

(Reporting by Brinda Darasha; editing by Sevan Scaria )