Egypt signs USD 32bn of MoUs for green fuel projects

Egypt's SCZONE signs seven new MoUs for green energy production. Image by SCZONE.

August 26 (Renewables Now) - Egypt has agreed seven new pacts with international companies worth about USD 32 billion (EUR 32.09bn) to build facilities for the production of green fuel in Sokhna that will be exported or supplied to ships.

The signing ceremony took place on Thursday at the Egyptian Cabinet's headquarters and was attended by Prime Minister Mostafa Madbouly.

The MoUs were sealed between the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA) and seven companies.

The largest pact with a planned investment of USD 13 billion was signed with India's Acme Group which is planning to build a plant in Sokhna to produce 2.2 billion tonnes of green hydrogen annually.

Another deal was agreed with UK's Globeleq for the construction of a plant that will produce 2 million tonnes of green fuel per year. The investment in the project is estimated at USD 11 billion.

Saudi company Alfanar intends to set up a USD-4-billion facility with the capacity to produce 500,000 tonnes of green fuel annually.

UAE-based Alcazar is planning to build an industrial complex in Sokhna with a production capacity of 230,000 tonnes of green fuel annually. This project is worth USD 2 billion.

Another pact involving the production of 230,000 tonnes of green hydrogen per year in Sokhna was signed with K&K Global Company.

An MoU with MEP Mediterranean Energy Partners envisages investments of USD 250 million in the construction of a plant for the production of green fuel. The facility will have an annual capacity of 120,000 tonnes of green ammonia.

The seventh project is planned by Actis. The London-based investor will seek to establish an industrial complex for green fuel production from hydrogen and green ammonia in the industrial zone of Sokhna with an annual capacity of 200,000 tonnes. The planned investment totals USD 1.5 billion.

"The integration between the industrial zones and the affiliated ports gave SCZONE the competitive advantage that made it one of the most important global destinations and a regional hub for the green fuel industries," said SCZONE's chairman Waleid Gamal El-Dein.

The flurry of deals comes only a few months after Egypt inked six MOUs worth USD 10 billion for the development of green hydrogen and green ammonia projects in the Ain Sokhna region.

(USD 1 = EUR 1.003)

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Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.

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