Saudi’s energy firm ACWA Power signed the framework agreement with the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA).
This has come after the MoU that was signed in 7th of December 2022 to outline the development of the first phase of the green hydrogen project in Egypt with a capacity of 600,000 tonnes-per-year of green ammonia. The investment is estimated to be more than USD 4bn to scale up to a second phase with a potential capacity of 2 million tonnes-per-year.
“The framework agreement lays out the development of the first phase of a green ammonia project with a capacity of 600,000 tonnes-per-year powered by wind and solar plants, with the intention of working on a larger green hydrogen project in the country which could have a capacity of up to two million-tonnes-per-year of green hydrogen, as per the statement. “
Marco Arcelli, Chief Executive Officer of ACWA Power, said, “As a first mover in green hydrogen, ACWA Power is proud to bring its expertise in this new and exciting market to Egypt. We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world. Egypt is well-positioned to become one of the world’s top producers of green hydrogen and we are elated to be a part of the country’s energy transition.”
“It will be a significant addition to ACWA Power’s rapidly expanding green hydrogen portfolio,” said he.
It may be note that development is well underway at the NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products, and NEOM to create the world’s first utility-scale green hydrogen plant in the northwest of Saudi Arabia. The project will be capable of producing 1.2 million tonnes of green ammonia per year. The first wind turbines were delivered to the site in October.
Moreover, ACWA Power has signed deals for various other green hydrogen projects in countries such as Uzbekistan, Jordan and Indonesia, recently.
