Voltalia has signed a framework agreement with TAQA Arabia to develop a significant green hydrogen production cluster, continuing the progress from a Memorandum of Understanding (MoU) signed in December 2022.
The framework agreement outlines the development of a green hydrogen and renewable power cluster in two phases. Each phase will feature a 500-megawatt electrolyzer powered by over 1.3 gigawatts of solar and wind energy, with an annual hydrogen production capacity exceeding 350,000 tons per phase. This facility will be strategically located near the Ain Sokhna port in the Suez Canal Economic Zone, benefiting from the region’s logistical advantages.
The signing ceremony included high-profile attendees such as Egypt’s Prime Minister, H.E. Dr. Mostafa Madbouly, and the President of the European Commission, Ursula von der Leyen. This high level of governmental support underscores Egypt’s commitment to renewable energy and green hydrogen initiatives. Sebastien Clerc, CEO of Voltalia, emphasized the importance of this project in enhancing Egypt’s regional leadership in green hydrogen production and its broader green transformation plans.
Globally, green hydrogen projects are accelerating, with countries like Australia, Germany, and Japan leading the way. Australia’s Asian Renewable Energy Hub, for instance, aims to produce 1.8 million tons of green hydrogen annually. The Voltalia-TAQA Arabia project, with a combined annual capacity of 700,000 tons from both phases, is a substantial but still smaller endeavor in comparison.
One of the primary challenges for the Voltalia-TAQA Arabia project will be the economic viability of green hydrogen production. Currently, producing hydrogen through electrolysis using renewable energy is more costly than traditional methods involving fossil fuels. The consortium must leverage advancements in electrolyzer technology and achieve economies of scale to reduce production costs and make the project economically competitive.
The strategic location near Ain Sokhna port offers significant logistical benefits for exporting green hydrogen, aligning with global markets’ increasing demand. However, successful implementation will require robust infrastructure, efficient supply chains, and continuous technological innovation.
The involvement of TAQA Arabia, with its extensive experience in the energy sector, and Voltalia’s renewable energy expertise, provides a solid foundation for the project. The collaboration also reflects a broader trend of international partnerships aimed at accelerating green hydrogen development.
