ACWA Power Explores Green Hydrogen Development Project in Tunisia

Tunisia’s Ministry of Industry, Mines, and Energy and ACWA Power signed an MoU to assess the potential of a three-phase project to generate up to 600,000 tons of green hydrogen per year for export to Europe. ACWA Power will develop, operate, and maintain 12 GW of renewable energy electricity generation units, such as storage systems and transmission lines, water desalination plants, electrolyzers, and infrastructure connected to the primary pipeline.

“This project aligns perfectly with the Tunisian Government's national green hydrogen strategy, which targets an annual production of 8.3 million tons of green hydrogen and byproducts by 2050,” said Ouael Chouchene, Secretary of State for Energy Transition. “We are confident that this agreement with ACWA Power will leverage Tunisia's strengths, including its strategic geographic location, existing infrastructure, and skilled workforce, to create a more sustainable future for the country."

In the MoU’s initial phase, ACWA Power will install 4 GW of renewable energy units, 2 GW of electrolyzer capacity, and battery storage facilities to generate 200,000 tons of green hydrogen on an annual basis. Green hydrogen is planned for export through the South 2 Corridor—a hydrogen pipeline initiative led by European transmission system operators that will connect Tunisia to Italy, Austria, and Germany.

Map of the South 2 Corridor; Image Credits: South2Corridor

“We are excited to work with the Tunisian Government on this visionary project, bringing our expertise in renewables, desalination and green hydrogen to build a bridge with Europe to help reach its decarbonization targets,” said Chouchene. “This project can also contribute significantly to economic growth, job creation, and sustainable energy solutions, exemplifying our shared vision for a greener future.”

ACWA Power’s participation will play a key role in backing Tunisia’s National Strategy for the Development of Green Hydrogen and its Derivatives, commenced in October 2023. Within the national program lies an action plan for exporting more than 6 million tons of green hydrogen to Europe by 2050.

In January 2024, ACWA Power announced the signing of a framework agreement to develop the first phase of a green hydrogen project in Egypt with a complete green ammonia capacity of 600,000 tons per year. The $4 billion investment allows for a planned upscale during the second phase, with a potential green ammonia capacity of 2 million tons per year. The framework agreement builds upon an MoU signed in December of 2022, which outlined the development of the project’s first phase.

“As a first mover in green hydrogen, ACWA Power is proud to bring its expertise in this new market to Egypt,” said Marco Arcelli, Chief Executive Officer, ACWA Power. “We commend our partners for their step into producing the fuel for the future, for which there will be demand in Europe and the rest of the world. Egypt is well-positioned to become a top producer of green hydrogen and we are elated to be a part of the country’s energy transition.”

The first phase of the project will produce 600,000 tons of green ammonia per year powered by wind and solar plants. Following the execution of the first phase, ACWA Power will develop a larger green hydrogen project with a capacity of up to 2 million tons per year. ACWA Power now owns a total of five projects in operation, under construction, or in advanced development across Egypt. These renewable energy projects have a total power generation capacity of 1.4 GW.