ACWA Power has signed a memorandum of understanding with the South African Industrial Development Corporation to “develop” green hydrogen in the country. The memorandum has a potential value of $10 billion, ACWA Power said in a press release.
What it is: Green hydrogen refers to hydrogen produced from renewable energy sources such as solar or wind power. When hydrogen is electrically separated from water, it can be used as an energy source.
Why it matters: South African President Cyril Ramaphosa visited Saudi Arabia this month and signed a $15 billion deal with the country. These include a commitment to collaborate on projects related to hydrogen.
Saudi Arabia is seeking to improve relations with the sub-Saharan African nation, in part to counter Iran’s growing influence on the continent. The strategy includes projects related to energy. Earlier this month, the Saudi Development Fund signed an agreement to finance solar street lighting in the Central African Republic.
Like other countries in North Africa and the Middle East, oil-rich Saudi Arabia is interested in developing hydrogen as an energy source. In August, the Saudi company Alfanar signed an agreement to develop a clean hydrogen plant in Egypt.
Green hydrogen can generate energy that reduces carbon emissions because it is produced from renewable energy sources.
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Post time: Oct-28-2022