ACWA Power to Develop Green Hydrogen Project in Egypt
The project, worth more than $4 billion, will have an annual capacity of 600,000 tons of green ammonia, eventually scaling up to 2 million tons per year during the second phase.
ACWA Power has 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 a memorandum of understanding (MoU) signed in December of 2022, which outlined the development of the project’s first phase.
The agreement was signed between ACWA Power and the Sovereign Fund of Egypt, the Suez Canal Economic Zone, the Egyptian Electric Transmission Company, and the New & Renewable Energy Authority. ACWA Power’s framework agreement represents the next step in the development of its large-scale green hydrogen facility.
Signing of the framework agreement; Image Credits: ACWA Power
“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.
