China Energy to launch USD-5bn green H2 project in Egypt in May

China Energy is planning to begin the implementation of a USD-5.1-billion (EUR 4.82bn) green hydrogen project in Egypt in May, its chairman said during a meeting with Egypt's prime minister Mostafa Madbouly.

China Energy was one of several local and international companies that at the end of 2022 signed memorandums of understanding (MoU) to study the development of green hydrogen production in the Suez Canal Economic Zone.

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The Chinese investor will send a team from the company next month to discuss the details of the project, Song Hailiang said according to a statement by the Egyptian Cabinet.

The project will be developed in two phases and includes a solar and wind power plant, electrolysers for the production of hydrogen, ammonia synthesis devices, and supporting storage and processing facilities, as previously announced. Once in operation, the complex is expected to produce 140,000 tons of green hydrogen per year.

Hailiang said that the output could be exported as green ammonia to Europe.

During the meeting, the chairman noted that China Energy has already done work on 10 energy projects in Egypt. Currently, the company is working on an interconnector between Egypt and Saudi Arabia as well as on a 700-MW solar project in Kom Ombo.

In addition, the company is interested also in investments in the replacement of power lines and water desalination plants.

On his part, Madbouly said that the government is ready to provide a large package of incentives and ministries will cooperate with each other to support and speed up the completion of these projects

(USD 1 = EUR 0.945)