(Dubai / United Arab Emirates) – Dubai-based project developer AMEA Power has signed a framework agreement with the Egyptian government to develop a 1.000 megawatt green hydrogen project. Also involved are the state-owned Sovereign Fund of Egypt, the grid operator Egyptian Electricity Transmission (EETC), which is subordinate to the Ministry of Electricity, the New and Renewable Energy Authority and the administration of the Suez Canal Economic Zone.
800.000 tons of ammonia per year
The aim of the joint project in the coastal town of Ain Sokhna in Suez Governorate is the production of green ammonia with a focus on export. The capacity is 800.000 tons per year. The project is “the first of several large-scale clean energy projects that AMEA Power will develop across the region,” said Hussain Al Nowais, chairman of AMEA Power. The company is now beginning to “expand its activities across Africa”.
AMEA Power is “in advanced discussions” with European, Chinese and Japanese companies to find long-term buyers for the green ammonia. AMEA Power is also in talks with the Egyptian Hydrocarbon Corporation, a manufacturer of ammonium nitrate, to supply them with some of the hydrogen.
The first section could go into operation in 2027
The power plant will be developed in two construction phases of 500 megawatts each. The first phase could go into operation in 2027. After the completion of a feasibility study, the development of the Front End Engineering Design (FEED) would begin in January 2023. The final investment decision is expected within the next 24 to 36 months. Financial and technical details were not disclosed. It also remains unclear where the green electricity will come from.
AMEA Power says it has a renewable energy pipeline of almost six gigawatts in 15 countries, including several large-scale projects in Egypt. The 500-megawatt “Abydos” photovoltaic plant in Aswan Governorate and the 500-megawatt “Amunet” wind farm in the Red Sea Governorate are “at an advanced stage,” according to the company.
Further hydrogen projects in Ain Sokhna
The special economic zone in Ain Sokhna is also important for other companies. Around two weeks ago, a consortium of well-known companies led by the Norwegian project developer Scatec ASA The first phase of a hydrogen plant called “Egypt Green” went into operation.
When fully developed, the output of the electrolyzers will be 100 megawatts, and the electricity will then be supplied by solar and wind power plants with an installed capacity of 260 megawatts. The future plant will supply up to 15.000 tonnes of green hydrogen as feedstock for the production of up to 90.000 tonnes of green ammonia per year to Fertiglobe in Ain Sokhna. The European Bank for Reconstruction and Development (EBRD) is supporting this project with a loan of 80 million dollars (77,2 million euros).
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AMEA Power signed an agreement with the Egyptian government in November to develop hydrogen production with a capacity of one gigawatt. © AMEA
