Econostrum | Economic News in the Mediterranean

UAE's Masdar to produce green hydrogen in Egypt

Written by Frédéric Dubessy on Tuesday, April 26th 2022 à 16:10 | Read 388 times

The Suez Canal Economic Zone confirms its desire to become a showcase for green energy with the signing of a new Memorandum of Understanding (MoU) for a hydrogen production plant by the UAE's Masdar and Hassan Allam Utilities.

The MoU will provide an additional 4 GW of green hydrogen production capacity per year in the Suez Canal Economic Zone (photo: Masdar)
The MoU will provide an additional 4 GW of green hydrogen production capacity per year in the Suez Canal Economic Zone (photo: Masdar)
EGYPT. Following the signing, on Wednesday 20 April 2022, of two new memoranda of understanding to promote green fuel and green ammonia in the Suez Canal Economic Zone, Masdar, a wholly-owned subsidiary of Mubadala Investment Company, and Hassan Allam Utilities, a subsidiary of the Emirati group Hassam Allam Holding, also announced, on Sunday 24 April 2022, the construction of a green hydrogen production plant in Egypt.

"These agreements represent a key step in the development of the green hydrogen economy for the UAE and Egypt, and will play an important role in the decarbonisation efforts of both our nations. By working with partners such as Hassan Allam Utilities, we can help the green hydrogen market reach its full potential in the coming years and play its part in supporting the global energy transition," said Mohamed Jameel Al Ramahin, CEO of Abu Dhabi-based Masdar ($20 billion in assets and over 15 GW of capacity). Amr Allam, CEO of Hassan Allam Holding, said: "Through this partnership with Masdar, we seek to harness cutting-edge technology to make a difference in Egypt by taking advantage of the country's abundant green energy sources."

The two entities plan to produce 480,000 tonnes of hydrogen annually, obtained through electrolysis from a renewable energy source. They have initialled a commitment with the Sovereign Wealth Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA). The agreement is part of the Egyptian government's Vision 2030 strategy and the strengthening of the strategic partnership between Egypt and the United Arab Emirates in the field of renewable energy and green hydrogen. The two countries will host the UN Climate Conferences COP27 (Sharm el-Sheikh, 7-8 November 2022) and COP28 (Dubai, 6-17 November 2023), respectively.

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"The state is striving to encourage investments in green energy projects, due to Egypt's potential to become an important hub and regional centre in this vital sector, which is expected to transform the global energy system in the coming period. These projects will also accelerate the energy transition process in the region," comments Mostafa Kamal Madbouly, Egyptian Prime Minister.

Also located in the Suez Canal Economic Zone on the Mediterranean coast, the Masdar and Hassan Allam Utilities green hydrogen plant will be developed in several stages. The first phase will produce 100,000 tonnes of e-methanol per year (green fuel) for bunkering ships in the Suez Canal by 2026. In 2030, the electrolysis capacity can be increased to 4 gigawatts (GW) to produce, again using green hydrogen, some 2.3 million tonnes of green ammonia for export, as well as supplying green hydrogen to local industries.

"Today's signing is the fifth of its kind for green fuel production projects in the Ain Soukhna area, as SCZone has a specific location and ports overlooking the Red Sea and the Mediterranean Sea. SCZone is qualified to become a regional hub for ship refuelling. All companies are currently conducting detailed feasibility studies for the projects, in order to sign and announce the actual contracts in conjunction with the COP27 climate summit in November," says Yehia Zaki, chairman of the Suez Canal Economic Zone General Authority (SCZone).


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