Egypt to open its first green hydrogen plant in November 2022

Egypt will have its first green hydrogen production plant up and running next November, Ayman Soliman, CEO of Egypt’s Sovereign Fund, said.

This comes in accordance with the agreement signed last October with the Norwegian Scatec alliance, Fertiglobe, and the Emirati Abu Dhabi National Oil Company, where quantities of 50 to 100 megawatts will be generated, which will be used to generate green ammonia. 

The North African country is also due to host COP27, the United Nations Climate Change Conference next November.

The production will be supplied to Fertiglobe-owned Egypt Basic Industries Corporation, which will use green hydrogen as a supplemental feedstock to produce more than 45 metric tons of green ammonia per year under a long-term purchase contract.

According to the agreement, the project’s ownership structure is divided between the Norwegian Scatec, which will own a majority stake in it, the Sovereign Fund of Egypt, and the Fertiglobe company owned by prominent Egyptian businessman, Nassef Sawiris.

The project will be located near the EBIC facilities in the industrial zone located in Ain Sokhna.

Soliman explained that green ammonia is a green fuel that can be used in the maritime and air transport sectors, which are among the most heavy contributors to pollution and carbon emissions, noting that Egypt will play a leading role in the transition to a green economy, especially since 18 percent of global trade passes through the Suez Canal.

He stressed that the use of green energy in the field of ship and aircraft catering will be beneficial and a qualitative leap for the Egyptian economy.

The project comes within the framework of the Fund’s efforts to support the field of infrastructure, on top of which comes the green sector with three key areas of concern.

Soliman added that the fund would encourage the private sector to participate in important investment projects to help the government direct its investments to sectors that are not attractive to investment.

TAQA Power, a subsidiary of TAQA Arabia, signed a memorandum of understanding with the German company MAN Energy Solutions, regarding a pilot project to produce green hydrogen locally in Egypt to power the tourist buses with clean fuel.

Under the MoU both partners will prepare a feasibility study over the next six months for the use of electrolysis solutions in hydrogen fuel plants.

The expected production of green hydrogen in Egypt comes amid the growing international demand for alternative fuels as key countries move away from a reliance on fossil fuels in order to mitigate the environmental impact and combat climate change.