Egypt to ink framework agreement for USD 7 bn green hydrogen plant: State-owned energy conglomerate China Energy Engineering Corporation (Energy China) will sign a framework agreement within two months with Egyptian government authorities to develop a USD 7 bn green hydrogen plant in Egypt’s Suez Canal Economic Zone (SCZone), according to a statement. The expected price tag of the project has increased USD 1.9 bn from the previously announced USD 5.1 bn investment earmarked for the project back in March.The agreement was signed by SCZone CEO Walid Gamal El Din during the SCZone’s global roadshow this week to drum up investments, and a visit to India is on the agenda for next month.

What we know about the project: The green hydrogen plant — which both the SCZone and Energy China have both yet to announce a timeline for — would produce 210k tons of green hydrogen and 1.2 mn tons of green ammonia per year, the statement notes.

REFRESHER- The Egyptian government approved green hydrogen incentives earlier this month to boost the country’s green hydrogen sector and enhance foreign exchange inflows, and signed framework agreements worth c. USD 83 bn for nine green hydrogen and ammonia plants at COP27 last year. The plants would produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year once fully operational.

SCZone is drumming up interest in Egypt’s renewables sector: SCZone’s delegation said several Chinese firms have already expressed interest in Egypt’s renewables manufacturing sector including Sinoma Engineering, which is gearing up to establish a turbine blade manufacturing plant in the SCZone, according to a separate statement.

Energy China is looking to expand its regional foothold beyond Egypt: Back in March, the company signed an MoU with Morocco’s Gaia Energy and Saudi Arabia’s Ajlan & Bros to jointly build a green hydrogen production facility in the kingdom which is set to produce some 1.4 mn tons of the green ammonia and 320k tons of green hydrogen annually once operational.