- The Egyptian Cabinet and the Suez Canal Economic Zone have announced a US$3 billion deal to produce up to 350,000 tonnes of green fuel annually for ships passing through the Suez Canal.
- The deal for the green hydrogen megaproject in Ain Sokhna on the Red Sea was signed between the government and the “Green Fuel Alliance” consortium led by French firm EDF Renewables and Egyptian company Zero Waste.
- The first phase of the latest project is planned for 2026 and second phase for 2030.
- The bunkering fuel will be used to service Suez Canal maritime traffic to help accelerate the timeline of the maritime industry to reach net zero emissions, SCZone said.
The Egyptian government was represented by the General Authority for the Suez Canal Economic Zone (SCZone), the Ministry of Electricity, the Authority of New and Renewable Energy and the Sovereign Fund of Egypt. “The SCZone welcomes the opportunity of partnering with the distinguished public and private entities joining forces for the development of this megaproject,” said Yehia Zaki, chairman of the general authority for the SCZone, which spans 461 kilometres.
“We look forward to witnessing its execution over the coming months as a first step towards the adoption of the green ammonia technology and creation of a green fuels industrial hub in the SCZone.”
Egypt also signed an agreement with the UAE’s AMEA Power, which is affiliated with Al Nowais Group, to produce up to 390,000 tonnes of green ammonia a year in Ain Sokhna.
“The Egyptian state, under the leadership of President Abdel Fattah El Sisi, is keen to sign more projects that support the transition to a green economy,” said Egyptian Prime Minister Mostafa Madbouly.
“Every effort in this regards is consistent with Egypt’s enormous capabilities to produce green hydrogen and green ammonia.”
The country is seeking to position itself as a regional energy hub and has been ramping up its green hydrogen ambitions in recent months, especially as it is set to host the Cop27 climate summit in Sharm El Sheikh in November.
Last month, Egypt signed an agreement with Norway’s Scatec to build the country’s first green ammonia plant at a cost of $5bn with a production capacity starting at 1 million tonnes annually and increasing to 3 million tonnes. The project in Ain Sokhna’s industrial zone is expected to start production in 2025. Read more
Author: Bryan Groenendaal
