(London, UK / Cairo, Egypt) – The British power plant operator and developer Globeleq Generation Ltd. wants to finance, build, own and operate hydrogen projects in the gigawatt range in Egypt. According to the company's own information, electrolysers with an output of 3,6 gigawatts will be built in three phases, which will be fed with electricity from solar and wind turbines with an installed capacity of nine gigawatts.
Green ammonia for agriculture
The first phase includes a pilot project with a 100-megawatt electrolyzer, initially focused on green ammonia fertilizer, according to Globeleq. Other applications of green hydrogen would also be considered in the “medium and longer term”, including a green fuel production plant with an annual production capacity of two million tonnes. The total investment is therefore eleven billion dollars.
The economic zone near the Suez Canal is named as the location. According to its own information, Globeleq has signed a declaration of intent with the New and Renewable Energy Authority (NREA), the responsible authority for the Suez Canal Economic Zone SCZone (General Authority for Suez Canal Economic Zone), the Egyptian sovereign wealth fund (Fund of Egypt for Investment and Development, TSFE) and the transmission system operator EETC (Egyptian Electricity Transmission Company).
Globeleq is owned by state-owned British International Investment plc. (70 percent) and the Norwegian state development finance institution Norfund (30 percent). The company invests primarily in the sub-Saharan region of Africa and has power plants with an output of 1.400 megawatts in six countries. The portfolio grew to a volume of six billion pounds (seven billion euros) in 2021. In Egypt, the financier operates a photovoltaic power plant with an output of 66 megawatts through its local subsidiary ARC for Renewable Energy SAE.
Seven hydrogen projects with billions in investments
A total of seven memorandums of understanding were signed between the Egyptian government and international companies from the UK, Saudi Arabia, India and the United Arab Emirates, SCZone said:
- The Saudi company Alfanar wants to build a green fuel production plant with a capacity of 500.000 tons per year and invest a total of four billion dollars. The industrial service provider designs and builds, among other things, power plants, including those for the renewable energy sector.
- Alcazar Energy of the United Arab Emirates plans to build an industrial complex for the production of green fuels with an investment of $230.000 billion and a total production capacity of XNUMX tons per year.
- The K&K Group from the United Arab Emirates plans to build a green hydrogen production plant with a capacity of 230.000 tons per year.
- Egyptian company Mediterranean Energy Partners (MEP) is investing $250 million to build a green ammonia plant with a production capacity of 120.000 tons per year.
- India's ACME Group plans to build a $13 billion green hydrogen production plant with a total capacity of 2,2 million tons per year.
- The British investment company Actis plans to build plants for the production of environmentally friendly fuels with a total investment of 1,5 billion dollars and a production capacity of 200.000 tons per year. “The letter of intent enables Actis to enter one of the largest hydrogen markets in the region,” the company said. While Egypt is not the only market for green hydrogen, it has “significant advantages due to its renewable resources and proximity to European and Asian markets.”
A few days before the announcement of the latest agreements, SCZone hosted a roundtable on green hydrogen projects. This was initiated in coordination with the European Bank for Reconstruction and Development, EETC, NREA and the Egyptian sovereign wealth fund. SCZone said at the event that it had already signed nine letters of intent with several global partners for the production of green fuel.
SCZone wants to present plans for COP27
“By signing memorandums of understanding with various international organizations, numerous facilities will be available for production 
of green fuels for export and for ship bunkering,” said Waleid Gamal El-Dein, Chairman of SCZone. The integration of industrial zones and their associated ports creates a competitive advantage, “making them one of the most important global destinations and a regional hub for the green fuel industry.”
The authority plans to announce details as well as several projects and final contracts at the 27th UN Climate Change Conference (COP 27) in Sharm El Sheikh. Egypt will host the congress from November 6th to 18th, 2022.
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Globeleq wants to produce green hydrogen from solar and wind power in Egypt. © Globeleq Generation Ltd.
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Egypt has signed 16 green hydrogen agreements with international companies. © SCZone
