The Emirates consortium heralded by Masdar had signed two Memorandums of Understanding (MoU) in April with the Egyptian companies to establish a cooperative relationship on the development of this project over the SCZONE and the Mediterranean Coast.
Masdar, one of the leading renewable energy firms of UAE, along with the Emirates consortium partners Infinity Power Holding and Hassan Allam Utilities, has struck an agreement to develop two state-of-the-art green hydrogen projects in the Suez Canal Economic Zone (SCZONE). Some of the prominent state-funded organizations are also backing up the consortium, namely, the New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, The Sovereign Fund of Egypt, and The General Authority for the Suez Canal Economic Zone.
The Emirates consortium heralded by Masdar had signed two Memorandums of Understanding (MoU) in April with the Egyptian companies to establish a cooperative relationship on the development of this project over the SCZONE and the Mediterranean Coast. It was undertaken with the motive to consolidate and strengthen relations between the two countries and their corresponding sectors, thereby achieving individual interests. The consortium is aiming for an electrolyzer capacity of 4 gigawatts with a green hydrogen output generation of approximately 480,000 tonnes per year.
In conjunction with the UN Climate Change Conference (COP27) held in Egypt from Nov 6 to Nov 18, the agreement was signed in the presence of Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology of UAE, and the Chairman of Masdar; Dr. Mohamed Shaker El-Markabi, minister of Electricity and Renewable Energy of Egypt; and Hala Al-Said, minister of planning and economic development of Egypt.
Mohammad Abdelqader El-Ramahi (Director for Asset Management Technology and Green Hydrogen at Masdar), Amr Allam (CEO of Hassan Allam Utilities) and Mohamed Ismail Mansour (Chairman of Infinity Power Holding) were the official signatories of the agreements signed on Tuesday.
The consortium is set to enter into a binding framework agreement with the SCZONE, the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt (TSFE) with the agreement laying out the key terms and conditions for developing the first phase of the program.
The first phase of the program project intends to establish a green hydrogen manufacturing facility in the SCZONE, which shall be scheduled to begin operations by 2026. The electrolyser portion in the SCZONE and the Mediterranean Coast may extend up to 2030 with a capability to produce 2.3 million tonnes of green ammonia for local supply to industries and exports.
The agreement focuses on strengthening ties between the nations and highlights the commitments of the countries to deliver a zero-carbon energy solution. The joint efforts help in reciprocating expertise and sharing insights. Masdar also has a 10-gigawatt wind project lined up, also in Egypt, with Hassan Allam Utilities and Infinity power Holding as partners. The wind farm is expected to reduce carbon dioxide emissions by 23.8 million tonnes each year. Decarbonisation is the end goal of both projects.
Egypt has abundant solar and wind resources that can aid in the generation of renewable energy, which can boost Egypt’s potential to become a pivotal regional hub in transforming the global energy system. The country is making efforts to encourage people to invest in green energy projects.
These projects are set to provide an early-mover advantage in the global hydrogen market, giving them a competitive edge, as the abundance of natural resources will help them set a competitive cost over any other peers in the industry. Egypt also lies in close proximity to markets where the demand for eco-hydrogen is set to expand over the years, offering it a number of opportunities.
The governments also expect an inflow of foreign direct investments that would help in optimising costs and boost the share of renewables by 42% in Egypt’s energy mix. The countries are looking forward to making practical advances in the energy transition that would make Egypt a green energy hub and provide significant benefits to both their economies and the climate.