Egypt, Saudi developer ACWA Power invest over $4 billion to develop green hydrogen project

Ahram Online , Wednesday 20 Dec 2023

Egypt signed an agreement with Saudi Arabia’s utility developer ACWA Power to develop a green hydrogen project in the Suez Canal Economic Zone (SCZONE) with investments exceeding $4 billion, according to a Cabinet statement on Wednesday.

The signing ceremony.
High-ranking officials from TSFE, SCA, EETC, and ACWA Power during the signing ceremony.


The agreement was inked by the Sovereign Fund of Egypt (TSFE), the Suez Canal Authority (SCA), the Egyptian Electricity Transmission Company (EETC), the state-run New and Renewable Energy Authority (NREA), and the Saudi company ACWA Power.

Moreover, the signing ceremony was attended by Minister of Electricity and Renewable Energy Mohamed Shaker, Minister of Planning and Economic Development Hala El-Said, CEO of ACWA Power Marco Arcelli, and, Chairman of the SCZONE Walid Gamal El-Din.

The project’s first phase will have a production capacity of 600,000 tons of green ammonia annually, Shaker revealed.

The second phase will expand that number to two million tons per year, he added.

For his part, Arcelli emphasized the project's significance, highlighting the role of green hydrogen as the fuel of the future, poised to experience tremendous demand in Europe and beyond.

Arcelli also recognized Egypt's immense potential to become one of the world's largest producers of green hydrogen, further solidifying the nation's commitment to sustainable energy leadership.

ACWA Power already has five operational, under-construction, and advanced-stage projects in Egypt, all of which are related to new and renewable energy, Arcelli added.

In recent months, Egypt has been forging international partnerships within the SCZONE to develop the green hydrogen sector.

One such notable collaboration was established in October with C2X, the green energy arm of Danish logistics titan Maersk, to construct an expansive green fuel production facility for ships' bunkering services, with a $3 billion investment earmarked for the initial phase.

Furthermore, the country signed over the past year many MoUs with various international entities to attract foreign investment in green hydrogen and become a global hub for hydrogen production.

In August, Egypt approved the creation of the National Council for Green Hydrogen to stimulate green investment, as part of the country's plan to promote sustainable social and economic development.

The council, headed by Prime Minister Mostafa Madbouly, aims to ensure the country’s regional and international competitiveness.

Egypt aims in the coming years to reduce carbon emissions and promote the use of renewable and alternative energy sources, including green hydrogen, as part of its National Climate Strategy 2050 launched in May 2022.

As part of this strategy, Egypt aims to produce green hydrogen at the lowest cost worldwide by 2050 at $1.7 per kg and capture eight percent of the global hydrogen market, according to previous statements by government officials.

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