Saudi Arabia's ACWA Power (TADAWUL:2082) announced last Month that it has signed a memorandum of understanding (MoU) with POSCO Holdings Inc, the holding company of South Korea’s largest steel producer POSCO Group, to jointly explore projects for the production of green hydrogen and green ammonia.

The initiative will require new greenfield investments as the partners aim to decarbonise POSCO Group’s operations and that of its clients in South Korea.

POSCO Group will use green hydrogen and ammonia for steel making, having the capacity to produce 42.9 million metric tonnes as of 2021, and also for power generation needs and other industrial processes and, ACWA Power said.

The South Korean company has set a target to produce 500,000 tonnes of hydrogen globally by 2030, according to the partners, who did not disclose other details about their cooperation.