Smartenergy is interested in investing $1 billion in Egypt for green hydrogen plant. The company would be expanding for the first time outside of Europe. According to a source who spoke with Asharq Al-Aswsat, the company is in the final stages of negotiations with the Egyptian government to establish a green hydrogen plant.
The deal between the two parties will shortly be approved, according to René Cotting, chief financial officer of Smartenergy. He did not, however, offer any further details about the situation.
The agreement was initially supposed to be signed some time ago. But delays occurred because of various procedures related to new land licenses and issuance dates, according to sources. A source in the Egyptian government has stated that the agreement will be signed during the fourth quarter of 2023.
Targets for Egypt’s hydrogen plants in the Suez Canal Economic Zone
These plants are anticipated to produce up to 7.6 million tons of green ammonia and 2.7 million tons of hydrogen yearly once they are completely operational. Nine environmentally friendly hydrogen and ammonia facilities will be built as part of the agreements in the Suez Canal Economic Zone.
The impending Smartenergy agreement will support earlier government initiatives to make Egypt a regional centre for green energy. Egyptian officials signed USD 83 billion in framework agreements for green hydrogen and ammonia facilities during COP27, which was held in Sharm El-Sheikh in November 2022.
Smartenergy focuses on making investments in projects related to renewable energy. The company finances renewable energy projects in numerous European nations, using solar, wind, and green hydrogen energy.
Green hydrogen stands out as an environmentally beneficial energy alternative. Generating only water vapor and leaving no hazardous legacy in the atmosphere. As the harm caused by climate change expands even farther. The annual emissions of 830 million tonnes of carbon dioxide linked with the production of hydrogen from fossil fuels might be reduced if the world switched to green hydrogen.
5 key initiatives in Egypt’s Green hydrogen plans
Egypt is moving forward with key initiatives to drive its green hydrogen production goals. This is evident in the recent proposed lawas to further icentivise the sector. 5 of the key initiatives are
- The establishment of green hydrogen production plants,
- desalination plants that allocate a portion of their production to green hydrogen,
- renewable energy facilities dedicating at least 95 percent of their output to green hydrogen and desalination plants, as well as
- projects focused on the transportation, storage, and distribution of green hydrogen.
- It also covers ventures engaged in manufacturing raw materials for green hydrogen plants.