Egypt's Masdar Institute will be developing a 4GW green hydrogen project
In April, Egyptian entities and the United Arab Emirates' (UAE) Masdar, a leading clean energy company, signed two Memorandums of Understanding (MoUs) regarding the construction of a green hydrogen production plant in the Southern Cataract Zone (SCZONE) and a second plant on Egypt's Mediterranean coast. By 2030, the group hopes to have built electrolyzers with a capacity of 4 GW, producing as much as 480,000 tonnes of green hydrogen annually.
Aside from the United Nations Climate Change Conference in 2022, the agreement was signed (COP27).
UAE Minister of Industry and Advanced Technology, UAE Special Envoy for Climate, and Masdar Chairman Dr. Sultan Al Jaber said, "Today's announcement serves to strengthen the ties between the United Arab Emirates and the Republic of Egypt and highlights our two nations' commitment to delivering zero-carbon energy solutions. Supporting Egypt's decarbonization goals, Masdar has announced a 10-gigawatt wind project in Egypt with our partners Hassan Allam Utilities and Infinity Power Holding, and now this 4-gigawatt green hydrogen initiative.
Infinity Power's chairman, Mohamed Ismail Mansour, said, "The project is projected to support economic growth for the country and assist position Egypt as a Green Fuel Hub, thereby accelerating the country's transition to a green economy." We hope to participate in many more endeavours like this in the future.
Hassan Allam Holding CEO Amr Allam remarked, "Such strategic alliances between Hassan Allam Utilities, Masdar, and Infinity Power create new options that help Egypt's transformation towards a green economy and encourage sustainable development across the country. We're pleased to help Egypt capitalise on its tremendous natural resources by building green hydrogen manufacturing plants.
"We are always working towards growing our range of services across all technologies of sustainable energy production," stated Nayer Fouad, CEO of Infinity Power. This is a huge step forward for Infinity Power, and we're excited to keep building on this success with more Green Hydrogen projects to help make Africa's sustainable future a reality.
"Today's announcement takes us a vital step closer to advancing this massive collaborative project," said Mohammed Jameel Al Ramahi, CEO of Masdar. "This project has the potential to bolster Egypt's energy independence and enable the production of high-value green hydrogen derivatives for export, like green ammonia." With the goal of creating the first green hydrogen molecule by 2026, it is critical that we keep up our current pace to ensure that this pioneering project is completed on schedule.
The consortium will enter into a legally binding framework agreement with the SCZONE, the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt as per the terms of the deal (TSFE). The terms and conditions of the first stage of the green hydrogen development programme are outlined in the agreement.
The consortium's initial phase of the project involves constructing a green hydrogen manufacturing facility in the SCZONE, with operations set to commence in 2026. Up to 4 GW of electrolyzer plants could be built in the SCZONE and along the Mediterranean by 2030, allowing for the production of 2.3 million metric tonnes of green ammonia for export and the provision of green hydrogen for local businesses.
Egypt's closeness to markets with the highest projected growth in demand for green hydrogen, as well as the country's vast solar and wind resources, make it a promising export destination.