ACWA Power inks deal to develop green hydrogen project in Egypt

ACWA Power has signed a framework agreement for the development of the first phase of a green hydrogen project in Egypt.

The agreement involves collaboration between ACWA Power and several entities, including 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).

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Green hydrogen project

The investment for the project is estimated to be over US $4bn. It aims to produce 600,000 tonnes per year of green ammonia in its initial phase. There are plans to scale up the project to a second phase with a potential capacity of 2 million tonnes per year.

The green hydrogen project will be powered by wind and solar plants. The intention is to work on a larger green hydrogen project in Egypt, potentially reaching a capacity of up to 2 million tonnes per year. ACWA Power is described as a “first mover in green hydrogen” and expresses pride in bringing its expertise to the Egyptian market. The company believes Egypt is well-positioned to become a top producer of green hydrogen globally.

The firm is actively involved in multiple green hydrogen projects globally, with a focus on contributing to the energy transition and producing green hydrogen for future demand, particularly in Europe and the rest of the world. They recently broke ground on its second green hydrogen project in Uzbekistan, with plans for expansion. Agreements for green hydrogen projects were signed during COP28 for projects in Jordan and Indonesia. ACWA Power is also part of the NEOM Green Hydrogen Project, a joint venture with Air Products in Saudi Arabia, aiming to create the world’s first utility-scale green hydrogen plant.