Fortescue gets land rights for 7.6 GW of wind, solar in Egypt

Australia’s Fortescue Future Industries (FFI) has secured exclusive land rights for sites that could accommodate 7.6 GW of wind and solar power capacity to produce green hydrogen in Egypt.

The green energy business of Australian iron ore company Fortescue Metals Group Ltd (ASX:FMG) has signed a framework agreement with the Egyptian government at the COP27 climate summit in Sharm El Sheikh, Egypt. The binding agreement will give the Aussie firm access to land areas and study the potential for renewable capacity deployment, it said on Wednesday.

The proposed capacity is planned to facilitate the production of 330,000 tonnes of green hydrogen annually.

The land agreement follows FFI’s earlier Memorandum of Understanding (MoU) with Egyptian authorities to conduct studies related to the production of green hydrogen in the Arab Republic. It also comes on the heels of official talks with Egyptian authorities in September, while the capacity discussed at the time was 9.2 GW.

“A big company like FFI showing interest in the Egyptian market underscores the attractiveness of the investment climate in Egypt, as well as its capabilities in the renewable energy field,” said Prime Minister Mostafa Madbouly.

The COP27 venue has become the stage for a series of deals supporting Egypt in its efforts to boost the share of renewable energy to 42% of its energy mix by 2035. Among them are contracts for some 18 GW of wind power projects, including a 10-GW plan by UAE's Masdar.

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