A consortium led by UAE’s state-owned renewable energy company Masdar is set to build a 2GW green hydrogen project in the Suez Canal Economic Zone (SCZONE), Egypt.
The consortium, which also comprises Infinity Power and Hassan Allam Utilities as partners, has signed a framework agreement with organisations backed by the Egyptian government.
Earlier this year, it signed two MoUs for the development of two green hydrogen production plants in Egypt, one in the SCZONE and the other in the Mediterranean.
The current agreement was signed at the 2022 United Nations Climate Change Conference (COP27).
The consortium aims to build an electrolyser with 4GW capacity by 2030, with an output of up to 480,000 tonnes of green hydrogen per year.
UAE Minister of Industry and Advanced Technology, UAE Special Envoy for Climate, and Masdar chairman Sultan Al Jaber said: “Today’s announcement serves to strengthen the ties between the United Arab Emirates and the Republic of Egypt and highlights our two nations’ commitment to delivering zero-carbon energy solutions.
“This 4GW green hydrogen program follows Masdar’s announcement last week of a 10-gigawatt wind project in Egypt, also with our partners Hassan Allam Utilities and Infinity Power Holding – both will support Egypt’s decarbonization objectives.
“Through Egypt’s hosting of COP27, our two countries have also been able to exchange expertise and share insights that we will take forward and build on in the UAE when we host COP28 next year.”
Under the terms of the agreement, the consortium will sign a binding framework agreement with the SCZONE, the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and The Sovereign Fund of Egypt (TSFE).
The agreement will decide important terms and conditions for the green hydrogen development program, with a focus on the first phase.
In the first phase, the consortium will establish a green hydrogen manufacturing facility in the SCZONE, which is planned to commence operations by 2026.
The electrolyser facilities in the SCZONE and in the Mediterranean could be extended to up to 4GW by 2030 to produce 2.3 million tonnes of green ammonia.
Masdar CEO Mohammed Jameel Al Ramahi said: “Today’s announcement takes us a vital step closer to advancing this massive collaborative project, which stands to bolster Egypt’s energy independence and enable the production of high-value green hydrogen derivatives for export, like green ammonia.
“With the first green hydrogen molecule set to be produced by 2026, it is imperative we continue to maintain momentum to ensure timely completion of this groundbreaking undertaking.”
