RIYADH: Saudi Public Investment Fund-owned ACWA Power Co. has signed a memorandum of understanding with South Korea’s POSCO Holdings to jointly explore the production of green hydrogen. The agreement will involve the joint development of green hydrogen and its derivatives which include green ammonia, a press release stated. The MoU also includes decarbonizing POSCO Group’s power generation, and its steel manufacturing processes, along with serving other Korean clients of POSCO Group, it added. “The partnership with POSCO Holdings, a giant in their field, represents our firm commitment toward 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,” said Paddy Padmanathan, vice chairman and CEO of ACWA Power. This deal will also help to meet POSCO Group’s ambitious targets to produce 500,000 tons of hydrogen globally by 2030, the press release further noted. Meanwhile, ACWA Power, in association with NEOM and Air Products, is developing a green hydrogen project in Saudi Arabia, which is expected to be completed in 2026. Once completed, the project will produce 1.2 million tons of green ammonia per year for the purposes of decarbonizing industries.