ACWA Power and ITOCHU pen ammonia development and offtake deal

Saudi-listed ACWA Power and Japan’s ITOCHU Corporation have signed an agreement to explore the codeveloping and offtaking of ammonia from ACWA Power’s green hydrogen project in Egypt.

Courtesy of ACWA Power

Marco Arcelli, Chief Executive Officer (CEO) of ACWA Power, commented: “We look forward to working with Itochu on the development of our Egyptian Green Ammonia project. We value their vision and their partnership, and I am confident that together we can make this project a reality.”

Takeo Akamatsu, General Manager of Green Innovation Business Unit from Itochu Corporation, stated: “Through this collaboration with the reputable partner, ACWA Power, our initiatives to introduce low-carbon/clean ammonia to the maritime sector as an alternative zero-emission fuel will be reinforced, as this product of green ammonia will be a promising source for our ammonia bunkering hub set-up in the Suez Canal under joint development with our partner in line with the Egyptian government’s support.”

This deal follows the framework agreement that ACWA Power signed with the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA) in December 2023 to develop the first phase of the green hydrogen project, expected to have a capacity of 600,000 tonnes-per-year of green ammonia.

At the time, ACWA Power said the agreement laid out the development of the first phase of the green ammonia project powered by wind and solar plants, with the intention of working on a larger green hydrogen project in the country which could have a capacity of up to 2 million tonnes-per-year of green hydrogen.

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ACWA Power’s current green hydrogen portfolio includes the participation in NEOM Green Hydrogen Project, a joint venture between ACWA Power, Air Products and NEOM to create the world’s first utility-scale green hydrogen plant in the northwest of Saudi Arabia, and a plant in Uzbekistan, together with its partner Uzkimyosanoat, on which construction began in November 2023.

Recently, ACWA Power signed a memorandum of understanding (MoU) with the Tunisian government to explore the potential for a project that would produce up to 600,000 tonnes per year of green hydrogen in three phases, for export to Europe. The hydrogen is aimed to be exported through the South2 Corridor, connecting Tunisia to Italy, Austria and Germany.