ACWA Power, a Saudi energy company, has entered into a framework agreement with Egypt's energy authorities to spearhead a $4 billion green hydrogen initiative in North Africa. The ambitious project, fueled by wind and solar energy, aims to commence with the production of 600,000 tons of green ammonia annually in its initial phase. The collaboration involves key entities, including The Sovereign Fund of Egypt, the Suez Canal Economic Zone, the Egyptian Electricity Transmission Co, and the New and Renewable Energy Authority. This strategic partnership builds upon a previous Memorandum of Understanding inked in December 2022, outlining plans for the project's first phase. The green hydrogen produced is intended for export to Europe and to facilitate the decarbonization of energy-intensive maritime activities along the Suez Canal. ACWA Power's CEO expressed commendation for the bold endeavor, recognizing the growing global demand for this sustainable fuel.
Egypt, with its abundant co-located renewable resources, is poised to harness the significant potential for green hydrogen production, aiming to secure a 5 to 8 percent share in the global hydrogen market as per its national strategy. The country's aspiration aligns with addressing the future demand for green hydrogen in Europe and worldwide. The project's success is contingent on scalable production, with the second phase targeting an annual output of two million tons of green ammonia. The collaborative effort underscores the commitment of the involved entities to contribute to the transition towards cleaner energy solutions and underscores Egypt's ambition to play a notable role in the emerging green hydrogen market.