Econostrum | Economic News in the Mediterranean

Saudi Arabia's Alfanar to invest $3.5 billion in green hydrogen project in Egypt

Written by Eric Apim on Tuesday, August 30th 2022 à 15:44 | Read 614 times

Alfanar specializes in power generation and transmission projects, especially renewable energy (photo: Alfanar)
Alfanar specializes in power generation and transmission projects, especially renewable energy (photo: Alfanar)
EGYPT. Saudi company Alfanar has signed a memorandum of understanding with the Egyptian government to build a green hydrogen production plant at the Ain Soukhna port site.
In a statement released Monday, August 29, 2022, the company said the facility will produce 500,000 tons of green ammonia, used in agricultural fertilizers, from 100,000 tons of green hydrogen per year. The investment is expected to reach $3.5 billion.

No details on when construction will start or when it will be commissioned were given.

Alfanar is already present in Egypt where it operates a 50 MW photovoltaic array at the Bendan solar park (Aswan).

Specializing in power generation and transmission projects, especially renewable energy, the Saudi company is also developing projects in Spain, Italy, Turkey, the United Kingdom, the United Arab Emirates and India.

Green projects multiply in Egypt

As Egypt prepares to host COP27 (United Nations Climate Change Conference) in Sharm el-Sheikh in November 2022, projects involving industrial production from renewable energy are multiplying in the country, particularly in the port of Ain Soukhna.

Several international companies have initialed memoranda of understanding with the Suez Canal Economic Zone (SCZone) since the beginning of the year. In March 2022, Norway's Scatec announced the construction of a green ammonia plant.

In April 2022, a consortium consisting of the Sovereign Wealth Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), France's EDF Renewables (a subsidiary of EDF) and the Zero-Weste Egypt Alliance signed up for a project to produce 350,000 tons of green fuel a year in the port and industrial complex of Ain Soukhna. On the same date, AMEA Power UAE (a subsidiary of the UAE-based Al Nowais Group) signed a contract to produce green ammonia from green hydrogen (obtained from renewable energy) also at Ain Soukhna. The partners are aiming for a production capacity of 240,000 tons per year in the first phase and 390,000 tons eventually.

In the same month, Masdar, a wholly-owned subsidiary of Mubadala Investment Company, and Hassan Allam Utilities, a subsidiary of the UAE-based Hassam Allam Holding, signed an agreement with SCZone for the construction of a green hydrogen production plant with a capacity of 480,000 tons of hydrogen per year.

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