Saudi government-affiliated Acwa Power is exploring the potential to develop large-scale green hydrogen and ammonia production projects together with South Korea’s biggest power generator, Kepco.

The two companies have signed a memorandum of understanding to explore potential projects in the Middle East and elsewhere. Under the agreement, Kepco would be the sole offtaker of any projects developed.

Kepco, which is majority owned by the South Korean state, aims to use 5-10mn t/yr of green ammonia for power generation by 2030.

“We are honoured to work with committed, long-term partners like Kepco to accelerate the exploration of green hydrogen,” says Paddy Padmanathan, CEO of Acwa Power.

Acwa is already working with South Korean conglomerate Posco to jointly explore the development of green hydrogen and ammonia projects to supply Posco’s power generation and steelmaking operations.

Separately, the Saudi company is developing the $5bn Neom green ammonia plant in Saudi Arabia together with US industrial gases company Air Products. FID on the project, which will produce 1.2mn t/yr of green ammonia, is expected by the end of this year. Acwa is also developing a large-scale green ammonia project in Oman together with Air Products and Omani state-owned energy group OQ.

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Author: Stuart Penson