ACWA Power, a prominent Saudi developer and operator specializing in power generation, water desalination, and green h2 plants globally, has inked a framework agreement to advance the inaugural phase of a green hydrogen project in Egypt, featuring a production capacity of 600,000 tons per year of green ammonia, entailing a substantial investment exceeding $4 billion.
This milestone agreement, building upon the Memorandum of Understanding (MoU) signed in December 2022, delineates the development of the initial phase of a green ammonia project powered by wind and solar facilities. The broader aspiration involves collaborating on an extensive green hydrogen project within Egypt, potentially boasting a capacity of up to 2 million tons per year of green hydrogen.
The agreement was formalized between ACWA Power and key entities, including 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).
Marco Arcelli, CEO of ACWA Power, expressed, “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.”
This latest venture adds to ACWA Power’s growing portfolio in Egypt, comprising five assets that are operational, under construction, or in advanced development, all centered around renewable energy initiatives. Additionally, it contributes to ACWA Power’s broader green hydrogen endeavors, which include the NEOM Green Hydrogen Project, a collaborative effort to establish the world’s first utility-scale green hydrogen plant in Saudi Arabia.
In recent months, ACWA Power has embarked on a green hydrogen project in Uzbekistan and solidified agreements for similar projects in Jordan and Indonesia, showcasing the company’s commitment to advancing sustainable energy solutions globally.
