Egypt’s SCZone signs agreement at COP28 to boost green energy projects

Ahram Online , Tuesday 5 Dec 2023

The Egyptian Suez Canal Economic Zone (SCZone) has recently signed a strategic cooperation agreement with Egypt-based Injazat Company and Chinese CHINT Global, to establish an industrial complex for green energy within the SCZone, covering a substantial area of 2 million square metres, according to a statement on Tuesday.

The signing ceremony.
The signing ceremony.

The agreement was signed by Walid Gamal El-Din, chairman of the SCZone, Mohamed El-Demerdash, managing director of Injazat, and Jeff Kaye, general manager of CHINT Global.

This signing took place during the 2023 UN Climate Change Conference (COP28) in Dubai.

The statement indicated that 2024 will witness the signing of the framework agreement and the completion of technical and financial feasibility studies.

Gamal El-Din emphasized the agreement’s alignment with SCZone's commitment to the green economy and Egypt's overall vision for the energy sector.

The SCZone also engaged in other significant agreements during the conference. One of these agreements involves exporting electricity generated from solar energy sources to the Chinese company Joshi, with a capacity of 7 megabytes.

Another notable contract was signed between Elsewedy Industrial Development Company and Joshi, allocating land for fiberglass production and establishing an industrial complex spanning an area of 60,000 square metres.

This complex will serve as an expansion of Joshi's existing factory, which focuses on sustainable and environmentally friendly products, with an investment cost of $920 million and a production capacity of 350,000 tons per year.

Joshi will benefit from the incentives provided by the SCZone, investing approximately $8 million in the established complex.

Furthermore, an agreement was reached between Elsewedy Company and the Emirati company Futurevert to allocate an industrial plot of land within the Sokhna 360 project.

This plot, covering an area of 127,000 square metres, will be utilized for the production of agricultural nutrients.

The collaboration between the two parties aims to enable Futurevert Egypt to invest up to $50 million in the first and second phases of the project for producing 300,000 tons of agricultural nutrients in the initial phase.

During COP28, the SCZone and the Ministry of Electricity and Renewable Energy also signed agreements with the Norwegian energy company Scatec and a group of international financial institutions, including the African Development Bank (AfDB) and British International Investment (BII).

In addition, Egypt's Minister of International Cooperation Rania Al-Mashat and Minister of Electricity Mahmoud Shaker signed a letter of intent to join the BESS alliance. This alliance, an initiative of the Global Energy Alliance for People and Planet (GEAPP), consists of ten members, including Egypt.

By 2024, the BESS alliance aims to store five gigawatts of renewable energy as part of a broader plan to generate 400 gigawatts of renewable energy by 2030.

During 2022, Egypt has been actively pursuing agreements with various international entities through memorandums of understanding (MoUs) to attract foreign investment in green hydrogen.


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