Globeleq, the leading independent power company in Africa, signed an agreement with the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC), to jointly develop a large-scale green hydrogen facility in the Suez Canal Economic Zone.
Under the agreement, Globeleq will develop, finance, build, and operate the green hydrogen project.
The project will be developed over three phases, totalling 3.6 GW of electrolysers and around 9 GW of solar and wind power generation.
The project will initially focus on green ammonia fertilisers, but other potential end-uses of green hydrogen will be considered in the medium and longer term, including green fuels.
Globeleq said that it intends to enter into long-term agreements with leading and creditworthy Egyptian and international companies, while supporting their decarbonisation plans.
“Capitalising on Egypt’s best-in-class wind and solar photovolatic resource, well-developed infrastructure, as well as the Egyptian government’s investment-friendly regulatory framework, Globeleq aims to competitively produce hydrogen for export and for the local market. Egypt’s unique geographical location, at the crossroads of Africa, Europe, and Asia, with about 13 percent of global trade flowing through the Suez Canal, puts the country in a position to become a global green energy hub,” said the company.
Actis signed a memorandum with the Egyptian government to establish an industrial complex for the production of green fuels from hydrogen and green ammonia, with a total investment cost exceeding $1 billion.
“Egypt has a comparative advantage due to its renewable resources and proximity to European and Asian markets. This opportunity is an attractive proposition for Actis as it develops its hydrogen strategy and evolves the next generation of investment platforms,” the company said.
“Globeleq and Actis are two leading British investors, who have been investing in Egypt for nearly 20 years. We are delighted with the signing of these MoUs. Egypt is one of the largest hydrogen markets in the region and these projects will support both countries’ leadership and ambitions towards renewable energy and combating climate change. We look forward to continue working with Egypt and strengthening our green partnership,” British Ambassador to Egypt Gareth Bayley stated.
“The partnerships we are witnessing are a translation of the state’s integrated strategy to diversify energy sources and localise green hydrogen production with all its components, covering upstream and downstream stages, with the aim of transforming Egypt into a regional green energy hub. Our objective is to maximise the use of Egypt’s renewable energy resources in partnership with global specialised developers, whereby the goals and strategy of the Sovereign Fund of Egypt are realise,” said TSFE’s CEO Ayman Soliman.
CEO of Globeleq Mike Scholey said Egypt is a key country for Globeleq, stressing his pleasure to support Egypt’s ambitious green agenda and contribute to the fight against climate change.
“This signing is a continuation of our commitment to Egypt where we have a 20-year track-record of investing over $1 billion in some of the country’s most strategically important businesses and projects to become one of the leading foreign direct investors in the country," said Sherif El-Kholy, partner and head of Middle East and Africa for Infrastructure at Actis.
"Egypt has ambitious energy transition plans, in addition to hosting COP27 this year, and active steps are being taken to make Egypt a major hub for green hydrogen. We look forward to deepening our partnership with the Egyptian government and contributing to its 2030 renewable energy strategy through this project and others to come."