Monday 22 April 2024

Acwa Power seals $4bn Egypt green hydrogen project

CAIRO, December 23, 2023

Saudi-based Acwa Power, a global developer of power and desalination projects, a leader in energy transition and first mover into green hydrogen, said it has signed the framework agreement to outline the development of the first phase of the green hydrogen project in Egypt with a 600,000 tonnes-per-year capacity.
The plant, which is being set up at a total investment of over $4 billion, will boast a production capacity of 2 million tonnes-per-year once the second phase gets completed. 
The agreement was signed between Acwa Power and 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). 
It lays out the development of the first phase of a green ammonia project with a capacity of 600,000 tonnes-per-year powered by wind and solar plants, with the intention of working on a larger green hydrogen project in the country which could have a capacity of up to two million-tonnes-per-year of green hydrogen. The deal comes following an MoU that was signed early this month.
The signing ceremony took place in the presence of senior Egyptian officials Prime Minister Dr. Moustafa Madbouly, Minister of Electricity  Dr. Mohamed Shaker; Saudi Arabia's Ambassador to Egypt Osama Bin Ahmed Nugali, TSFE Chief Executive Officer Ayman Soliman, SCZone Chairman Waleid Gamal Eldien and EETC Chairman Engineer Sabah Mashaly and NREA Chairman Dr Mohamed El Khayat as well as Acwa Power officials CEO Marco Arcelli, CIO Thomas Brostrom, Vice President (Business Development-Green Hydrogen) Driss Berraho and Country Director (Egypt) Hassan Amin. 
This Framework agreement marks the next step in the development of this large-scale green hydrogen facility, it stated.
On the agreement, Arcelli said: "As a first mover in green hydrogen, Acwa Power is proud to bring its expertise in this new and exciting market to Egypt. We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world."
"Egypt is well-positioned to become one of the world’s top producers of green hydrogen and we are elated to be a part of the country’s energy transition," he stated.
Acwa Power has a history of developing significant renewable projects to ensure a reliable supply of clean and low-cost energy to Egypt. 
This latest project brings the total number of the Saudi group’s assets in operation, under construction, and in advanced development in Egypt to 5 – all renewable energy projects with a total power generation capacity of 1.4 GW. 
It will be a significant addition to Acwa Power’s rapidly expanding green hydrogen portfolio.
Development is well underway at the NEOM Green Hydrogen Project, a joint venture between Acwa Power, Air Products, and the Saudi futuristic city to create the world’s first utility-scale green hydrogen plant in the northwest of the kingdom. 
The project will be capable of producing 1.2 million tonnes of green ammonia per year. The first wind turbines were delivered to the site in October.
Last month, Acwa Power broke ground on its second green hydrogen project, in Uzbekistan. The Phase One of this project will be capable of producing 3,000 tonnes of green hydrogen per year, with the intention to expand to a second phase. 
Once the second phase is complete, 2.4 GW of wind energy will power the production of 500,000 tonnes of green ammonia per year, it added.-TradeArabia News Service


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