Roundup: Egypt signs deals to boost production of green energy

Egypt has signed on Wednesday two major commercial agreements to boost the country’s production of green ammonia in the Ain Sokhna region of Suez province, east of capital Cairo, as the country aspires to upgrade its environment-friendly industry.

The Egyptian cabinet said in a statement that the Suez Canal Economic Zone (SCZone) signed a memorandum of understanding (MoU), worth 3 billion U.S. dollars, with a consortium of EDF Renewables and ZeroWaste for the production of 350,000 tonnes of ammonia annually.

Ammonia is widely believed to be a promising substitute for the mainstream heavy fuel oil that can cut carbon emissions significantly.

The statement said that in the pilot phase, the project plans to produce 140,000 tonnes of ammonia using green hydrogen from desalinated seawater and renewable energy, and the capacity will be gradually raised to 350,000 tonnes a year.

The construction work of the facility will be launched in 2024, with commercial operation planned to begin in 2026.

Also on Wednesday, the country signed an agreement with AMEA Power, a company based in Dubai, to produce up to 390,000 tonnes of green ammonia a year in Ain Sokhna. The project will be established by end of 2022, with the commercial operations scheduled by the end of 2025.

Egyptian Prime Minister Mostafa Madbouly said the deals signed on Wednesday are “part of several projects that Egypt has agreed on to tap the country’s huge potentials for green hydrogen and ammonia production and turn the country into a regional hub for green energy.”

The prime minister added that Egypt “is keen to sign more deals for boosting its transition to the green economy.”

Madbouly also noted Egypt boasts a unique geographic location and an abundance of green energies such as solar and wind, so it has attracted international companies to boost investment in the green industry in the country.

SCZone Chairman Yehia Zaki said that SCZone signed several deals in the field of green energy recently to enforce Egypt’s national strategy on a green economy and for expanding its investments to carry out eco-friendly projects to improve the quality of life for its citizens.

Egypt’s Red Sea resort city of Sharm El-Sheikh will host in November the 27th edition of the UN climate change conference (COP27) as announced by the international organization during COP26 in Glasgow in November 2021.

On March 10, Egypt signed a five-billion-U.S. dollar MoU with Scatec, a Norwegian renewable energy company, to build a green ammonia project in the SCZone.

On March 28, Egypt signed with Maersk an MoU to produce green ammonia for fuelling 12 ships with goals to attain zero carbon emission by 2040.

The government seeks to raise the percentage of green projects to 50 percent of the budget allocated for investments in 2024. ■

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