An agreement has been inked for the development of a US$ 8bn green hydrogen factory in Sokhna, Egypt. The agreement was signed between the Egyptian government and the ReNEW Power.
ReNEW Power is a renewable energy producer based in Gurgaon, India. The company has worked with the Egyptian Electricity Transmission Company (EETC), in addition to the General Authority of the Suez Canal Economic Zone (Sczone). Moreover, the company has worked with the Sovereign Wealth Fund of Egypt (TSFE), as well as the New and Renewable Energy Authority (NREA).
As per this recent agreement, ReNEW will construct units capable of converting electricity into hydrogen as well as its derivatives. Located at the port city of Ain Sokhna, in the governorate of Suez, the facility is anticipated to have a 1.32 million tonnes capacity per annum.
The implementation phase
Construction of the green hydrogen factory in Sokhna will happen in phases. The project’s first phase will involve the construction of a facility that can produce 100,000 tonnes of green ammonia yearly. In addition, the facility will be capable of producing 20,000 tonnes of green hydrogen over the same period.
This phase will take place between 2023 and 2025. The project for the construction of the green hydrogen factory in Sokhna will reportedly require a US$ 710M investment in its earliest stages.
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The second phase on the other hand is expected to be implemented between 2025 and 2029. This phase aims to have an annual production capacity of 200,000 tonnes of green hydrogen. It is expected to produce one million tonnes of green ammonia annually for an estimated cost of US$ 7.147bn.
According to Sczone, the plants will be built on 600,000 m2 of land in the Sokhna integrated zone.
The green hydrogen factory in Sokhna to be one of Egypt’s largest
ReNEW Power plans to invest US$ 8bn in this p[project to produce 1.1 million tonnes of green ammonia and 220,000 tonnes of green hydrogen. The green hydrogen factory in Sokhna will reportedly be one of Egypt’s largest green hydrogen factories to date.
ReNEW Power on the other hand will become the eighth clean energy generator producing green hydrogen in the Suez gulfs of Egypt.
