Egypt’s Suez Canal Economic Zone (SCZone) has signed energy agreements worth up to $14.75 billion, signalling a new era of green energy in the region, according to a statement by the Egyptian cabinet on Tuesday.
A photo showing Egypt s Prime Minister Mostafa Madbouly witnessing the agreements signing ceremony
A photo showing Egypt s Prime Minister Mostafa Madbouly witnessing the agreements signing ceremony (Photo courtesy of the Egyptian cabinet s Facebook page).
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The SCZone has inked an agreement worth $6.75 billion with China Energy Engineering Group to build green ammonia and green hydrogen projects in the Ain Sokhna Industrial Zone.
With an annual production of 1.2 million tons of green ammonia and 210,000 tons of green hydrogen, the project illuminates Egypt’s efforts in the renewable energ sector.
The SCZone signed an agreement with Hong Kong-listed United Energy Group to establish a potassium chloride production complex with an expected investment of $8 billion.
The project will be carried out in three phases, starting with the experimental phase to produce 100,000 tons of potassium chloride and reaching to the third phase to produce 4.1 million tons.
The signing ceremony came on the sidelines of the third session of the Belt and Road Forum for International Cooperation held in China.
The forum also witnessed the presence of Egypt’s Prime Minister Mostafa Madbouly, on behalf of President Abdel-Fattah El-Sisi, who affirmed the country’s commitment to expand green energy projects.
During his speech, Madbouly said that it’s possible to grant the bilateral project specialized in green ammonia and green hydrogen production the golden license to accelerate its implementation.
Increasing investments in green ammonia, green hydrogen, and potassium chloride production areexpected to diversify Egypt’s energy sources and reduce its reliance on fossil fuels.
Egypt inked several deals in recent months with international alliances to produce green hydrogen and its derivatives in the SCZone.
In early October, the SCZone signed an agreement with C2X, the green energy arm of Danish logistics titan Maersk, to build a massive green fuel production facility, with a $3 billion investment.
As part of Egypt’s efforts to stimulate green investments, the cabinet approved in August the creation of the National Council for Green Hydrogen.
The country aims in the coming years to reduce carbon emissions and promote the use of renewable and alternative energy sources, including green hydrogen, as part of its National Climate Change Strategy 2050.
Egypt also targets producing green hydrogen at the lowest cost globally by 2050 – at $1.7 per kg – and acquiring eight percent of the global hydrogen market.
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