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Egypt inks 7 MoUs for green hydrogen production in Ain Sokhna

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Seven pioneering companies and international consortiums in the production of new and renewable energy signed the MoUs with a range of government entities, such as the New and Renewable Energy Authority (NREA), the General Authority for the SCZONE, the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt.

The first MOU was signed with Globeleq, a renowned independent power producer in Africa that operates and develops diverse power projects. In the SCZONE, the business will construct a new complex with a total area of 10 million square meters and an annual production capacity of up to 2 million tons of green hydrogen.

In accordance with the MOU, the production capacity of the complex’s pilot operation will be 55,000 tons of green hydrogen, which will be increased to 1.9 million tons in the first phase of the project in 2026.

According to the second MOU, Alfanar Global Development, located in Saudi Arabia, will construct a 4 million-square-metre facility for creating green hydrogen with an annual capacity of 500,000 tons.

Alfanar is a leader in non-traditional renewable energy sources and electric power stations.

The third MoU stipulated that UAE’s Karaz would construct a giant industrial complex on 37,000 square meters with a total production capacity of 55,000 tons of green hydrogen yearly during the pilot period, rising to 175,000 tons at the beginning of the first phase of actual operation.

The fourth MoU is with KK Power International of the UAE to construct a factory in Ain Sokhna Industrial Zone that will create 230,000 tons of green hydrogen.

According to the fifth MoU, Mediterranean Energy Partners (MEP) would construct a Green Ammonia factory with a production capacity of 120,000 tons per year on a land area of 100,000 square meters in the Sokhna industrial zone.

According to a statement by MEP, the project will be fueled by green hydrogen created from desalinated saltwater and renewable energy generated at sites specified by the NREA and transported over the national electricity network controlled by EETC.

ACME Group, an Indian renewable energy company, inked the sixth MOU to construct an industrial complex on 4.5 million square meters with an annual production capacity of 2.2 million tons of green hydrogen. The pilot operation of the complex will produce 100,000 tons.

Actis, a London-based company, inked the seventh MOU to construct an industrial complex on 2 million square meters in the Sokhna Industrial Zone to manufacture green hydrogen and green ammonia with a total annual production capacity of 200,000 tons. The pilot phase will produce 50,000 tons of green fuel, while the first phase of the project will produce 150,000 tons.

President Abdel-Fattah El-Sisi, according to Madbouly, has issued directions to maximize the use of renewable energy through green hydrogen projects, in view of the growing worldwide interest in these projects as a promising energy source for the near future.

He noted that El-Sisi also ordered the green hydrogen generation system to maximize the utilization of local components.

Madbouly elaborated that Egypt intends to diversify its electric energy production sources by utilizing its natural resources, particularly innovative and renewable energy sources.

In a separate discussion with Madbouly, SCZONE Chairman Gamal El-Din stated that the SCZONE aspires to become a regional and international hub for the production of green fuel and the maximization of profits from these projects.

The MoUs were signed two months prior to Egypt’s hosting of the 27th United Nations Climate Change Conference (COP27), which will be held in the Red Sea city of Sharm El-Sheikh from November 7-17.

Gamal El-Din stated that the SCZONE is drafting a plan to launch and promote the zone globally during COP27, as well as particular investment initiatives within the economic zone to promote it.

Nedim Husomanovic

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