Egypt signs 7 MoUs to produce green hydrogen in Ain Sokhna Industrial Zone

Ahram Online , MENA , Thursday 25 Aug 2022

Prime Minister Mostafa Madbouly attended the signing of seven Memorandums of Understanding (MoUs) to establish industrial complexes to produce green hydrogen in the Ain Sokhna Industrial Zone, which is located within the Suez Canal Economic Zone (SCZONE), a cabinet statement read on Thursday.

Prime Minister Moustfa Madbouly and officials of international companies at the cabinet headquarter
Prime Minister Moustfa Madbouly and officials of international companies at the cabinet headquarter in New Alamein city. Source: Cabinet.


Seven companies and international consortiums pioneering in the production of new and renewable energy signed the MoUs with a number of government entities, including the New and Renewable Energy Authority (NREA), the General Authority for the SCZONE, the Egyptian Electricity Transmission Company (EETC) and the Sovereign Fund of Egypt.

The first MoU was signed with the British Globeleq company, a leading independent power producer operating and developing diversified power projects in Africa. The company will establish a new complex for producing green hydrogen on a total area of 10 million square meters and a production capacity of up to 2 million tons of green hydrogen annually in the SCZONE.

The MoU states that the production capacity during the complex’s pilot operation would be 55,000 tons of green hydrogen to be boosted to 1.9 million tons in the project’s first phase in 2026.

According to the second MoU, the Saudi Arabia-based Alfanar Global Development will build a 4 million-square-metre facility for producing green hydrogen with a total capacity of 500,000 tons annually.

Alfanar is one of the leading companies in non-traditional renewable energy sources and electric energy stations.

The third MoU was for UAE’s Karaz to build a mega industrial complex on 37,000 square metres with a total production capacity of 55,000 tons of green hydrogen annually in the pilot period, to reach up to 175,000 tons by the start of the first phase of actual operation.

The fourth MoU is with the UAE’s KK Power International to build a factory that will produce 230,000 tons of green hydrogen in Ain Sokhna Industrial Zone.

According to the fifth MoU, Mediterranean Energy Partners (MEP) will establish a Green Ammonia facility with a production capacity of 120,000 tons per year on an area of 100,000 square meters in the industrial zone in Sokhna.

The project will be fed with green hydrogen that will be produced from desalinated seawater and renewable energy generated in the sites specified by the NREA and transmitted on the national electricity network operated by the EETC, according to a statement by MEP.

The sixth MoU was signed by India’s renewable energy firm ACME Group to build an industrial complex on 4.5 million square meters with a total production capacity of 2.2 million tons of green hydrogen annually, and the pilot operation of the complex will produce 100,000 tons.

The seventh MoU was signed by London-based firm Actis to build an industrial complex on 2 million square meters in the Sokhna Industrial Zone to produce green hydrogen and green ammonia with a total production capacity of 200,000 tons annually. In the pilot phase, 50,000 tons of green fuel will be produced and 150,000 tons in the first phase of the project.

Madbouly said that President Abdel-Fattah El-Sisi has issued directives to maximise the use of renewable energy through green hydrogen projects, in light of the growing global interest in these projects as a promising source of energy in the near future.

He added that El-Sisi also ordered maximising the use of local components in the green hydrogen production system.

Madbouly further explained that Egypt aims to diversify sources of electric energy production by making use of its natural wealth, especially new and renewable energy sources.

In a separate meeting with Madbouly, SCZONE Chairman Gamal El-Din said the SCZONE has a vision to be a regional and international hub to produce green fuel and to maximise return from these projects.

The signing of the MoUs comes two months ahead of Egypt’s hosting of the 27th UN Climate Change Conference (COP27), which will be held in Red Sea city of Sharm El-Sheikh on 7-17 November.

The SCZONE is preparing a plan to introduce and promote the zone on a global scale during COP27, while preparing specific investment projects within the economic zone to promote it, Gamal El-Din said.

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