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ACWA Power to Complete Green Hydrogen Project in Egypt by 2028

Saudi Arabia's ACWA Power plans to finish the first phase of a major green hydrogen project in Egypt by 2028, investing USD 4 billion. The project will produce 600,000 tonnes of green ammonia annually, with future expansions planned.

September 13, 2024. By EI News Network

The Egyptian unit of Saudi Arabia based ACWA Power, a developer, investor and operator of power and water projects, is set to fully complete the first phase of its ambitious green hydrogen project in the Suez Canal Economic Zone by the end of 2028.

This was disclosed by Hassan Amin, the Chief Executive of ACWA Power's Egyptian unit, while speaking to the media, where he revealed that concrete steps have been taken to advance the USD 4 billion (EUR 3.63 billion) initiative, marking a significant stride toward renewable energy development in the region.

The project, which was solidified through a framework agreement signed in December 2023, will be executed in two phases. The first phase involves an investment of approximately USD 4 billion to construct a plant capable of producing 600,000 tonnes of green ammonia per year. This phase is expected to be completed by the fourth quarter of 2028. The second phase of the project envisions a substantial expansion, potentially boosting the facility's capacity to 2 million tonnes of green ammonia annually, positioning it as one of the largest green hydrogen plants in the region.

Powering the green hydrogen plant will be renewable energy sourced from the East Nile region in Minya Governorate, Upper Egypt. This strategic use of local renewable resources is intended to enhance the sustainability of the operation and support Egypt's broader environmental goals.

In addition to the green hydrogen plant, ACWA Power Egypt is pursuing several other major renewable energy projects. According to Amin, the company is currently managing projects valued at over USD 10 billion in Egypt. Among these is a 1.1 GW wind park in the Gulf of Suez and Jabal El-Zeit. This wind energy project, which requires an investment of USD 1.5 billion, will also be developed in two phases, with construction work set to commence by the end of this year.

The green hydrogen project aligns with Egypt's national strategy to position itself as a regional hub for clean energy production and export. It also reflects ACWA Power's commitment to expanding its renewable energy footprint in strategic locations worldwide.

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First phase of green hydrogen project in Egypt