Advancing green hydrogen development in North Africa, ACWA Power has signed a framework agreement with Egypt’s energy authorities for the development of a four-billion-dollar green hydrogen project.
Powered by wind and solar plants, the facility’s first phase will produce 600,000 tons of green ammonia per year, with a view to scaling production to two million tons per year in its second phase.
Signed with The Sovereign Fund of Egypt, the Suez Canal Economic Zone, the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority, the agreement outlines development plans for the first phase and follows an earlier Memorandum of Understanding signed in December 2022.
“We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world,” commented Marco Arcelli, CEO of ACWA Power.
Owing to substantial co-located renewable resources, Egypt is considered to have significant potential for green hydrogen production and is seeking to capture 5-8% of the global hydrogen market, according to its national strategy.
The country’s green hydrogen supplies would be used for export to Europe and to decarbonize energy-intensive maritime activities along the Suez Canal.
