China Energy intends to start construction on a $5.1 billion green hydrogen project in Egypt in May 2023. Reportedly,  the Chinese investor will send a team from the company to go through the project’s details in April 2023. As previously announced, the project will be developed in two phases and will feature a solar and wind power plant, electrolysers for hydrogen production, ammonia synthesis devices, and accompanying storage and processing facilities.

The facility is expected to produce 140,000 tonnes of green hydrogen annually once it is up and running. Moreover, the output from the project could be exported as green ammonia to Europe.

China Energy has previously worked on ten energy projects in Egypt. Presently, the company is engaged in two projects: a 700 MW solar project at Kom Ombo and an interconnector between Egypt and Saudi Arabia. In addition, the company is also interested in investments in the replacement of power lines and water desalination plants.

REGlobal’s Views: With massive solar and wind potential, and its proximity to important trade routes to Europe, Egypt is an ideal destination for green hydrogen production and export. The country is expected to witness a large number of green hydrogen projects getting deployed in the near future. Already companies like BP, AMEA Power, Alfanar, TotalEnergies, Globeleq, EDF, Fortescue Future Industries (FFI), ReNew and Scatec have expressed interest in establishing green hydrogen facilities in the country.