Saudi-listed ACWA Power has signed the framework agreement, following the MoU that was signed in December 2022, to outline the development of the first phase of the green hydrogen project in Egypt with a capacity of 600,000 tonnes-per-year of green ammonia, with an investment in excess of USD 4bn, with the intention of scaling up to a second phase with a potential capacity of 2 million tonnes-per-year.
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).
The framework agreement 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.
Marco Arcelli, Chief Executive Officer of ACWA Power, commented: “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.”