Egypt signs framework agreements with international power companies worth $83 bn to construct nine green hydrogen and ammonia facilities in the Suez Canal Economic Zone (SCZone), Invest-Gate reports.
These facilities, collectively, are set to produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year when fully operated.
However, the documents signed yesterday are framework agreements and are not binding commitments. The companies will continue to study the projects before coming to a final investment decision in the coming months.
The signed deals include an $8 bn agreement between ReNew Power and El Sewedy Electric to produce 220k tons of green hydrogen and 1.1 mn tons of ammonia a year. Also, UK power producer, Globeleq, inked an agreement to build a 2 mn-ton green hydrogen facility. The third deal is between Masdar and Hassan Allam for the sake of establishing a facility to produce up to 480k tons of green hydrogen a year.
In addition, Saudi company Alfanar signed one for its 500k-ton green ammonia facility. Another deal is signed by Australian energy producer Fortescue Future Industries to set up a green ammonia production facility with an annual production capacity of some 2 mn tons.
Further, Norway’s Scatec, Fertiglobe, Orascom Construction, and the Sovereign Fund of Egypt (SFE) inked an agreement for the consortium’s 100 MW green ammonia facility in Ain Sokhna. Al Nowais subsidiary AMEA Power’s signed a deal for a 390k-ton per-year green ammonia plant and could be up and running by the end of 2025 at its 500 MW green hydrogen plant in Ain Sokhna.
On the other hand, EDF Renewables and Egyptian firm ZeroWaste penned a deal with the SCZone for a $3 bn facility that is slated to produce some 350k tons of green ammonia for ships. Construction of the plant is expected to begin in 2024, with operations slated to begin in 2026.
The last deal is signed between French energy producer TotalEren and SME investor Enara Capital for a 300k-ton green ammonia facility in Ain Sokhna.
This, in turn, will put Egypt on the road to becoming a regional hub for green hydrogen.