The organizations include the Suez Canal Economic Zone, the New and Renewable Energy Authority, the Egyptian Electricity Transmission Company and the Sovereign Fund of Egypt.

“These agreements represent a vital step forward in the development of the green hydrogen economy for both the United Arab Emirates and Egypt, and will play a significant role in our two nations’ decarbonization efforts,” said Masdar CEO Mohamed Jameel Al Ramahi. “By working with partners such as Hassan Allam Utilities, we can help the green hydrogen market achieve its full potential over the coming years and play its part in supporting the global energy transition.”

The partners are currently conducting feasibility studies with the aim of announcing contracts at the time of the UN Climate Change Conference (COP27) being held in Sharm el-Sheikh, Egypt, in November.

In the first phase of the project, Masdar and Hassan Allam Utilities intend to establish a green hydrogen plant producing 100,000 t/y e-methanol for bunkering in the Suez Canal. Operations are scheduled to start by 2026.

Hassan Allam Holding’s CEO Amr Allam added that electrolyzer facilities in the Suez Canal Economic Zone and on the Mediterranean could be extended up to 4 GW to produce 2.3 million t/y of green ammonia for export and to supply green hydrogen for local industries.

Masdar and Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding, see Egypt as a hub for green hydrogen production, targeting the bunkering market, export to Europe and boosting local industry.

Egypt enjoys abundant solar and wind resources that allow renewable power to be generated at a highly competitive cost – a key enabler for producing green hydrogen. The country is also located within close proximity to markets where demand for green hydrogen is expected to grow the most, providing “robust opportunity” for export.

The Egyptian Ministry of Electricity is currently revising its 2030 renewable energy strategy to include green hydrogen. It is also developing a green hydrogen strategy, which is expected to be released by October.

Author: Elaine Burridge, Freelance Journalist