The consortium is targeting an electrolyzer capacity of 4 GW by 2030, and an output of up to 480,000 tonnes of green hydrogen per year.
As per the agreement, the consortium will enter into a binding framework agreement with the Egyptian New and Renewable Energy Authority (NREA), Egyptian Electricity Transmission Company (EETC), Suez Canal Economic Zone (SCZONE), and The Sovereign Fund of Egypt (TSFE). The agreement sets out the key terms and conditions for the green hydrogen development program with a focus on the first two projects of the program.
In the first phase of the project, the consortium will establish a green hydrogen manufacturing facility in the SCZONE, scheduled to begin operation by 2026. The electrolyzer facilities in the SCZONE and on the Mediterranean could be extended to up to 4 GW by 2030 to produce 2.3 million tonnes of green ammonia for export as well as to supply green hydrogen for local industries.
Egypt enjoys abundant solar and wind resources that can allow for the generation of renewable power at a highly competitive cost, a key enabler for green hydrogen production and is located within proximity to markets where demand for green hydrogen is expected to grow the most, providing a robust opportunity for export.
H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, UAE Special Envoy for Climate, and Chairman of Masdar, said: “Today’s announcement serves to strengthen the ties between the United Arab Emirates and the Republic of Egypt and highlights our two nations’ commitment to delivering zero-carbon energy solutions. This 4 GW green hydrogen project follows Masdar’s announcement last week of a 10-gigawatt wind project in Egypt, also with our partners Hassan Allam Utilities and Infinity Power Holding – both will support Egypt’s decarbonization objectives. Through Egypt’s hosting of COP27, our two countries have also been able to exchange expertise and share insights that we will take forward and build on in the UAE when we host COP28 next year.”