In order to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone, Globeleq, based in Africa, has signed a MoU with the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC).

The green hydrogen project will be developed, financed, constructed, owned, and operated by Globeleq. With 3.6 GW of electrolysers and about 9 GW of solar PV and wind power generation, it will be built out in three phases. Green ammonia fertilisers will be the primary users of green hydrogen in the first phase of the project, which will comprise a pilot project using a 100 MW electrolyser. In the medium- and long-term, green fuels will also be taken into consideration. Reportedly, Globeleq intends to enter into long-term off-take agreements with leading and creditworthy Egyptian and international companies, while supporting their decarbonisation plans.

Globeleq has been investing in Egypt since 2003 and currently owns the ARC for Renewable Energy S.A.E. 66 MWp solar PV plant located at the Benban Solar Park near Aswan. 

REGlobal’s Views: Egypt has a massive potential for expanding its solar and wind power capacities especially as the country is heavily dependent on conventional energy sources for much of its power generation. Further, the country has a huge geopolitical advantage as it is located at the crossroads of three continents – Africa, Europe and Asia. The country is, thus, at highly strategic shipping and trade route, and has the potential to become a major green hydrogen export hub.