The signing ceremony in the presence of Madbouly (centre)
Acwa Power, a global developer of power and desalination projects, has signed the framework agreement to outline the development of the first phase of the green hydrogen project in Egypt with a 600,000 tonnes-per-year (tpa) capacity.
The plant, which is being set up at a total investment of over $4 billion, will boast a production capacity of 2 million tonnes-per-year once the second phase gets completed.
The agreement was signed between Acwa Power and The Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) in the presence of Mostafa Madbouly, Egypt's Prime Miniser.
It lays out the development of the first phase of the green ammonia project, which will be powered by wind and solar plants. It also outlines the intention of working on a larger green hydrogen project in the country that could have a capacity of up to two million tpa of green hydrogen.
This framework agreement marks the next step in the development of this large-scale green hydrogen facility, it stated.
On the agreement, Marco Arcelli, CEO, ACWA Power said: "As a first mover in green hydrogen, Acwa Power is proud to bring its expertise in this new and exciting market to Egypt. We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world."
Egypt is well-positioned to become one of the world’s top producers of green hydrogen and we are elated to be a part of the country’s energy transition.
Acwa Power has a history of developing significant renewable projects to ensure a reliable supply of clean and low-cost energy to Egypt.
This latest project brings the total number of the Saudi group’s assets in operation, under construction, and in advanced development in Egypt to 5 – all renewable energy projects with a total power generation capacity of 1.4 GW.
It will be a significant addition to Acwa Power’s rapidly expanding green hydrogen portfolio.
