A framework agreement was signed by Masdar, its consortium partners Infinity Power Holding and Hassan Allam Utilities, and prominent state-backed institutions in Egypt for the development of a 2 GW green hydrogen project in the Suez Canal Economic Zone (SCZONE).
In conjunction with the 2022 United Nations Climate Change Conference, the agreement was signed (COP27). The SCZONE, the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and The Sovereign Fund of Egypt (TSFE) will all enter into binding framework agreements with the consortium in accordance with the terms of the agreement. With an emphasis on the program’s initial phase, the agreement lays out the essential terms and conditions for the green hydrogen development program.
The partnership will build a green hydrogen production facility in the SCZONE as part of the project’s first phase, with operations set to start by 2026. By 2030, the SCZONE and Mediterranean electrolyzer plants might be expanded to 4 GW, producing 2.3 million tonnes of green ammonia for export and supplying green hydrogen to regional companies.
Egypt has abundant solar and wind resources that make it possible to produce renewable energy at a highly competitive price, which is a crucial enabler for the production of green hydrogen. Egypt is also situated close to the markets where the demand for green hydrogen is anticipated to increase the most, opening up significant export opportunities.
An agreement was reached by Masdar, Infinity Power, and Hassan Allan Utilities to build one of the biggest wind farms in the world, a 10 GW onshore wind project in Egypt. After it is finished, the wind farm will cut annual carbon dioxide emissions by 23.8 million tonnes, or 9% of Egypt’s present output. Egyptian authorities allegedly are planning to update the nation’s renewable energy policy to incorporate green hydrogen. Egypt is aiming for renewables to account for 42% of its energy mix by 2035.
According to a report released jointly by Masdar and its Abu Dhabi Sustainability Week (ADSW) platform at COP27, Africa could take up to 10% of the global green hydrogen market, helping to create up to 3.7 million jobs and adding as much as US$120 billion to the continent’s gross domestic product (GDP).