Commercial, Sourcing Renewables - November 17, 2022
Egypt to Develop Green Hydrogen
The Government of Egypt and AMEA Power, a renewable energy company in the Middle East, signed a Framework Agreement to develop a 1,000MW green hydrogen project for the production of green ammonia focused on the export market.
The project will support the long term vision of Egypt to become a hub for green hydrogen production. AMEA Power has partnered with the Sovereign Fund of Egypt, the Egyptian Electricity Transmission, the New and Renewable Energy Authority, and the Suez Canal Economic Zone to deliver the project.
Located at the coastal town of Ain Sokhna in the Suez Governorate, the green hydrogen project will have a capacity to produce 800,000 tons of green ammonia per year for domestic and international export.
The clean energy project is aligned with the Integrated Sustainable Energy Strategy (ISES) set out by the Egyptian government, which aims to reach renewable energy targets of 42% by 2035.
“This great success marks a major milestone for Egypt’s green strategy and was only possible with the persistence of all government sponsors and the partners’ belief in the potential of Egypt as a green hydrogen hub,” said Ayman Soliman, Chief Executive Officer of The Sovereign Fund of Egypt, in a statement. “Egypt has put a tremendous effort in the development of its Green Hydrogen Program and has made incredible progress reaching this stage in a matter of months. The signing of this binding agreement is a testament to TSFE’s ability to execute on its role in attracting private investment into strategic sectors. It comes in-line with TSFE’s decarbonization strategy using sustainable means that benefit the economy and position Egypt as a regional green energy hub.”
The plant will be developed in two 500MW phases to de-risk the project and ensure it benefits from technology efficiency improvements and declining equipment prices. Operations on the first phase of the project are expected to commence in 2027.