Saudi Arabia’s Acwa Power has signed a framework agreement to outline the development of the first phase of Egypt’s green hydrogen project. The project outlines its ambition to produce 600,000 tonnes per year of green hydrogen in the country. The project’s scope budgets the total investment of the project at $4 billion. Furthermore, it is expected that the project will produce two million tonnes annually once the second phase is done. The agreement for the project was signed between the contracted company and the client company. This included Acwa Power and The Sovereign Fund of Egypt. The agreement also included the Suez Canal Economic Zone (SCZone) and the Egyptian Electricity Transmission Company (EETC).
Egypt’s Green Hydrogen project agreement lays out the development of the first phase which entails a green ammonia project. The green ammonia project will have a capacity of 600,000 tonnes per year and will be powered by other renewable sources. This includes wind and solar panels with the intent of working on a larger green hydrogen project in the country. This is expected to be the second phase of the project. The deal materialized after a memorandum of understanding (MoU) signed earlier this month. The signing of the green hydrogen project agreement took place in the presence of senior officials such as Egypt’s Prime minister.
Egypt’s Green Hydrogen Project Framework Agreement Is Significant for The Project’s Implementation
Egypt’s Green Hydrogen project framework agreement marks the next step in the development of this large-scale green hydrogen facility. Acwa Power is ensuring that it is at the forefront of unraveling this new market in Egypt. The company also commended Egypt for its bold ambition to tap into the green hydrogen market for prospects. The demand for green hydrogen and other renewable energy sources is slowly becoming the norm in the Middle East. Egypt is well positioned to become among the top producers of green hydrogen in the world. The green hydrogen project is also expected to be influential in the country’s energy transition.