ACWA Power gearing up to develop $4 billion green hydrogen project in Egypt

ACWA Power, a Saudi developer, investor and operator of power generation, water desalination and green hydrogen plants worldwide, has signed a framework agreement on the development of the first phase of a green hydrogen project in Egypt with a capacity of 600,000 tons per year of green ammonia, with an investment of more than $4 billion.

Courtesy of ACWA Power

According to ACWA Power, the agreement, which follows the signing of the MoU in December 2022, lays 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 tons per year of green hydrogen.

The agreement was signed between ACWA Power and 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).

Marco Arcelli, CEO of ACWA Power, stated: “ACWA Power is proud to bring its expertise in this new and exciting market to Egypt. We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world. Egypt is well-positioned to become one of the world’s top producers of green hydrogen and we are elated to be a part of the country’s energy transition.”

This latest project is said to bring the total number of ACWA Power’s assets in operation, under construction and in advanced development in Egypt to five, and all are renewable energy projects.

The project also adds to ACWA Power’s expanding green hydrogen portfolio which includes the 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.

To remind, in the last few months of 2023, the company launched a green hydrogen project in Uzbekistan and signed agreements for green hydrogen projects in Jordan and Indonesia.