KSA renewables giant Acwa Power has signed an agreement with Japan’s ItochuCorporation to explore collaboration on Acwa’s USD 4 bn green hydrogen project in Egypt, Argaam reported last week, citing a statement sent to them. The agreement will see both parties explore cooperation avenues on the development of the project and the potential for Itochu to purchase the green ammonia produced from the facility.

What we know: Acwa inked an agreement with the Egyptian government to develop the project last December. The first phase will have the capacity to produce 600k tons of green ammonia annually, while the second phase will expand the plant’s output by another 2 mn tons. The predicted investment value of the second phase was not disclosed, as well as the expected timeline for the entire project.

REMEMBER- Acwa Power already began research on the project: Acwa Power has begun conducting feasibility studies for its USD 4 bn project in the Suez Canal Economic Zone (SCZone) in February. Acwa is working with the Sovereign Fund of Egypt, the Suez Canal Economic Zone, the Egyptian Electricity Transmission Company, and the New and Renewable Energy Authority on the project.

Not Itochu’s first collaborations in the region: Emirates Steel Arkan partnered with Japanese steel manufacturing firm JFE Steel Corporation and Itochu Corporation to produce low-emission iron material for international export in 2022. Itochu Corporation also established an SAF supply network at domestic airports across Japan for domestic carriers, which has been expanded to international carriers starting with the UAE’s Etihad Airways in 2022.

Tags: