Egypt’s green hydrogen drive has drawn another USD 32 bn in investment pledges: Egypt’s Suez Canal Economic Zone (SCZONE) signed seven memoranda of understanding (MoUs) worth at least USD 31.75 bn to set up green hydrogen and ammonia production facilities, it said in a statement. The plants will have a combined annual production capacity of around 5.5 mn tons, with fuel set to be exported abroad and sold to the shipping industry, the statement said. The push towards investing in green hydrogen comes as the government looks to capitalize on investment momentum in green energy in the lead-up to COP27 in Sharm El Sheikh this November.

Who was involved? The MoUs were signed between SCZONE, the Sovereign Fund of Egypt (TSFE), Egyptian Electricity Transmission Company (EETC) and New and Renewable Energy Authority (NREA), and seven companies from the UK, Saudi Arabia, the UAE, and India.

The breakdown of the agreements and investments are as follows:

• India’s ACME Group will build a USD 13 bn hydrogen production plant with a total capacity of 2.2 mn tons annually;
• UK-headquartered Globeleq is set to establish a USD 11 bn green fuel production plant with an annual production capacity of 2 mn tons;
• Saudi company Al Fanar wants to build a USD 4 bn green fuel production facility with a capacity of 500k tons per annum;
• UAE’s Alcazar is looking at constructing an industrial complex for green fuel production with a total production capacity of 230k tons annually, at an investment value of USD 2 bn;
• Our friends at the UK’s Actis will establish green fuel production plants worth USD 1.5 bn with a production capacity of 200k tons annually;
• Egypt-based Mediterranean Energy Partners will invest USD 250 mn to establish a green ammonia plant with a production capacity of 120k tons per year;
• The UAE’s K&K Group is set to build a green hydrogen production plant of a yearly capacity of 230k tons, but details about the investment value were not disclosed.

What’s next: The companies will now begin conducting feasibility studies on the plants, the statement says.

What is the region as a whole doing in the field of green hydrogen? The MENA region is projected to be the world’s largest supplier of green hydrogen in the coming years with the region accounting for the highest number of export-oriented low carbon hydrogen projects, according to in-house research by the Abu Dhabi-based Clean Energy Business Council. The region has seen a significant ramp up in green and blue hydrogen projects from 11% in 2020 to 89% in 2021, the report says.