Masdar eyes green hydrogen production in Suez Canal
Abu Dhabi’s renewable energy company Masdar and investment platform Hassan Allam Utilities have signed two memorandums of understanding (MoUs) to cooperate on the development of green hydrogen production plants in the Suez Canal Economic Zone (SCZone) and on the Mediterranean coast.
The MoUs were signed with Egyptian state-backed entities including The General Authority for Suez Canal Economic Zone, New and Renewable Energy Authority, the Egyptian Electricity Transmission Company and The Sovereign Fund of Egypt.
The agreements will see Masdar and Hassan Allam Utilities set up a strategic platform that aspires to develop green hydrogen production plants in the SCZone and on the Mediterranean coast in Egypt.
The parties target an electrolyzer capacity of 4 GW by 2030, and an output of up to 480,000 tons of green hydrogen per year.
According to Amr Allam, CEO of Hassan Allam Holding, the first phase of the project aims to establish a green hydrogen manufacturing facility, which would be operational by 2026, producing 100,000 tons of e-methanol annually for bunkering in the Suez Canal.
“The electrolyser facilities in the Suez Canal Economic Zone and on the Mediterranean could be extended to up to 4 GW by 2030 to produce 2.3 million tons of green ammonia for export as well as supply green hydrogen for local industries”, Allam said.
Yehia Zaki, chairman of SCZONE, added: “Today’s signing is the fifth of its kind for green fuel production projects inside Sokhna zone … . SCZONE is qualified to be a regional hub for ship bunkering. All the companies now are conducting feasibility studies for the projects in detail to sign and announce the actual contracts in coinciding with the COP27 climate summit next November.”
The agreements are expected to contribute to the strengthening of the strategic partnership between the UAE and Egypt in renewable energy and green hydrogen, as the two countries prepare to host the COP27 and COP28 climate conferences.
The countries also seek to boost their roles in climate action and carbon emissions reduction with the agreements that are said to align with Egypt’s Vision 2030 and sustainable development strategy.
Commenting on the collaboration, Mohamed Jameel Al Ramahi, CEO of Masdar, said that the MoUs represent a step forward in the development of the green hydrogen economy for both the UAE and Egypt.
“By working with partners such as Hassan Allam Utilities, we can help the green hydrogen market achieve its full potential over the coming years and play its part in supporting the global energy transition”, he concludes.
Recently, Egyptian authorities entered into a partnership deal with Danish shipping giant Maersk to jointly explore the establishment of large-scale green fuel production in the country in the pursuit of net-zero shipping.
As informed at the time, a feasibility study will be conducted before the end of 2022 to examine Egypt-based hydrogen and green marine fuel production, powered by renewable energy with Maersk as a committed offtaker.
Meanwhile, Masdar is exploring the development of a UAE-based green hydrogen hub with French energy company Engie under a strategic alliance agreement.
The parties are looking to develop projects with a capacity of at least 2 GW by 2030 and will invest a total of $5 billion in the region.
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