{"id":74823,"date":"2022-11-16T02:12:54","date_gmt":"2022-11-16T02:12:54","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2022\/11\/16\/egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn\/"},"modified":"2022-11-16T02:12:54","modified_gmt":"2022-11-16T02:12:54","slug":"egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2022\/11\/16\/egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn\/","title":{"rendered":"Egypt signs framework agreements for green hydrogen + ammonia plants worth USD 83 bn"},"content":{"rendered":"<p><a id=\"tldr-story-01\" class=\"content-anchor\"><\/a> <strong>Another step forward to becoming a global green energy hub:<\/strong> Egypt has signed framework agreements with international power companies to construct nine green hydrogen and ammonia facilities in the Suez Canal Economic Zone, the cabinet announced in a series of statements (<a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid02Yo4Xn4NjeZhNYQC31oWWutPJfP5PosnWKr5tqcpWFrQ8XCUdhe149Gnw3gomJsQel\">here<\/a>, <a href=\"https:\/\/www.facebook.com\/MPEDEGYPT\/posts\/pfbid02EHxpLeMFVFrTWh5U2rXaRkTkmb4pSABDAgrjVcZaesghQz3SskypP6pRoizJbrqml\">here<\/a> and <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0VoCYPQ6bGtbTbfS2N5swN8pzKLPNwaWuPWAwwk3Zm5UMxPwHnhqeWsnxa8gJaLgGl\">here<\/a>) yesterday. The facilities would collectively produce up to 7.6 mn tons of green ammonia and 2.7 mn tons of hydrogen a year when fully operational, putting Egypt on the road to becoming a regional hub for green hydrogen.<\/p>\n<p><strong>Caveat: These aren\u2019t final agreements<\/strong>. The documents signed yesterday are framework agreements and are not binding commitments. The companies will continue to study the projects before coming to a final investment decision in the coming months, after which they would begin lining up financing.<\/p>\n<p><strong>If they all go ahead, a lot of money is heading our way: <\/strong>As much as <strong>USD 83 bn<\/strong> could be invested across the nine projects, cabinet said.<\/p>\n<p><strong>The players lining up to get involved in Egypt\u2019s green hydrogen plans:<\/strong><\/p>\n<p><strong>#1- ReNew Power and El Sewedy Electric<\/strong> signed an agreement for an <strong>USD 8 bn project<\/strong> that will produce <strong>220k tons of green hydrogen<\/strong> and <strong>1.1 mn tons of ammonia<\/strong> a year, <a href=\"https:\/\/investor.renewpower.in\/news-releases\/news-release-details\/renew-power-signs-framework-agreement-egyptian-government\">ReNew<\/a> and cabinet said. The company said it will undertake further studies and will make a final investment decision in the next 12-16 months. If it goes ahead, it expects to begin commissioning the pilot phase in 2026.<\/p>\n<p><strong>#2- <\/strong>UK power producer <strong>Globeleq <\/strong>inked an agreement to build a <strong>2 mn-ton green hydrogen <\/strong><strong>facility<\/strong>. The Africa-focused company had signed an early agreement <a href=\"https:\/\/enterprise.press\/stories\/2022\/08\/28\/seven-companies-ink-green-energy-mous-79230\/\">in August<\/a> for the plant.<\/p>\n<p><strong>#3- <\/strong>Saudi company <strong>Alfanar <\/strong>signed one for its <strong>500k-ton green ammonia facility.<\/strong> Alfanar <a href=\"https:\/\/www.reuters.com\/business\/sustainable-business\/saudis-alfanar-build-35-bln-green-hydrogen-project-egypt-2022-08-29\/\">earlier this<\/a><a href=\"https:\/\/www.reuters.com\/business\/sustainable-business\/saudis-alfanar-build-35-bln-green-hydrogen-project-egypt-2022-08-29\/\">year<\/a> signed a USD 3.5 bn MoU with several Egyptian organizations to build the facility that will produce ammonia from 100k tons of green hydrogen every year.<\/p>\n<p><strong>#4- Masdar, Hassan Allam, and Infinity <\/strong>inked an agreement to establish a <strong>facility to produce up to <\/strong><strong>480k tons of green hydrogen<\/strong> a year.<\/p>\n<p><strong>#5- <\/strong>Australian energy producer <strong><a href=\"https:\/\/ffi.com.au\/\">Fortescue Future Industries<\/a><\/strong> signed an agreement to set up <strong>a <\/strong><strong>green ammonia production facility<\/strong> with an annual production capacity of some 2 mn tons.<\/p>\n<p><strong>#6- Norway\u2019s Scatec, Fertiglobe, Orascom Construction, and the SFE <\/strong><strong>inked an agreement for the consortium\u2019s 100 MW green ammonia facility<\/strong> in Ain Sokhna. The facility <a href=\"https:\/\/enterprise.press\/stories\/2022\/11\/09\/fertiglobe-commissions-100-mw-plant-kicking-off-a-big-day-for-green-hydrogen-in-egypt-86670\/\">last week<\/a> saw the commissioning of its first phase. Once the plant is fully developed, it will produce up to 15k tons of green hydrogen as feedstock for as much as 90k tons of ammonia\u00a0per year.<\/p>\n<p><strong>#7- Al Nowais subsidiary AMEA Power\u2019s<\/strong> put pen to paper for a <strong>390k-ton per-year green <\/strong><strong>ammonia<\/strong> plant and could be up and running by the end of 2025 at its <strong><a href=\"https:\/\/enterprise.press\/stories\/2022\/11\/09\/fertiglobe-commissions-100-mw-plant-kicking-off-a-big-day-for-green-hydrogen-in-egypt-86670\/\">500 MW green hydrogen plant<\/a><\/strong><strong> in Ain Sokhna<\/strong>.<\/p>\n<p><strong>#8- <\/strong>French energy producer <strong>TotalEren<\/strong> and SME investor <strong>Enara Capital <\/strong>signed an agreement for a <strong>300k-ton green ammonia facility<\/strong> in Ain Sokhna. TotalEren and Enara first signed an MoU with Egypt <a href=\"https:\/\/enterprise.press\/stories\/2022\/05\/12\/totalenergies-ennara-capital-to-build-green-ammonia-facility-in-sczone-70764\/\">back in May<\/a> that stipulated the facility would initially produce 300k tons of ammonia each year.<\/p>\n<p><strong>#9- EDF Renewables <\/strong>and Egyptian firm <strong>ZeroWaste <\/strong>inked an agreement with the SCZone for a <a href=\"https:\/\/enterprise.press\/stories\/2022\/04\/26\/egypt-signs-green-energy-agreements-70042\/\">USD 3 bn<\/a> <strong>facility<\/strong> that is slated to produce some 350k tons of green ammonia for ships. Construction of the plant is expected to begin in 2024, with operations slated to begin in 2026.<\/p>\n<p><strong>Becoming a green hydrogen hub doesn\u2019t happen overnight:<\/strong> It\u2019s going to take until the middle of the next decade until all these facilities are fully operational, according to Planning Minister Hala El Said (<a href=\"https:\/\/www.youtube.com\/watch?v=9o9iqIfGudE\">watch, runtime: 13:54<\/a>).<\/p>\n<p><strong>Egypt wants to be a key player in the global hydrogen market:<\/strong> A host of companies have been conducting feasibility studies for green hydrogen and ammonia projects this year after signing MoUs worth bns of USD. The biggest project was an agreement with Maersk to work on a huge <a href=\"https:\/\/enterprise.press\/stories\/2022\/09\/21\/maersk-egypt-to-finalize-usd-15-bn-clean-fuel-project-at-cop27-81688\/\">USD 15 bn facility<\/a> capable of producing 3 mn tons of fuel a year, which the two sides are expected to finalize at COP27.<\/p>\n<p><strong>EBRD LENDS A HAND ON H2-<\/strong><\/p>\n<p><strong>The European Bank for Reconstruction and Development will provide a USD 80 <\/strong><strong>mn loan to Fertiglobe-Scatec-OC-SFE ammonia plant<\/strong>, which will be the country\u2019s first integrated green hydrogen plant, it said in <a href=\"https:\/\/www.ebrd.com\/news\/2022\/ebrd-supports-first-green-hydrogen-facility-in-egypt-.html\">a statement<\/a>. The loan comes nearly a week after the companies began <a href=\"https:\/\/enterprise.press\/stories\/2022\/11\/09\/fertiglobe-commissions-100-mw-plant-kicking-off-a-big-day-for-green-hydrogen-in-egypt-86670\/\">commissioning<\/a> the first phase of the 100 MW green hydrogen plant.<\/p>\n<p><strong>Where the funds are going<\/strong>: It will be used to acquire and build a 100 MW electrolyser facility powered by renewable energy. Upon completion, the facility will deliver up to 15k tons of green hydrogen annually.<\/p>\n<p><strong>IN REGIONAL GREEN FUEL NEWS-<\/strong><\/p>\n<p><strong>Denmark\u2019s Maersk is exploring green methanol in Jordan: <\/strong>The Jordanian Energy Ministry yesterday signed an MoU with Danish shipping giant AP Moller-Maersk to produce green methanol in Jordan using desalinated water and renewable energy, <a href=\"https:\/\/attaqa.net\/2022\/11\/15\/%d9%82%d9%85%d8%a9-%d8%a7%d9%84%d9%85%d9%86%d8%a7%d8%ae-%d9%88%d8%b2%d8%a7%d8%b1%d8%a9-%d8%a7%d9%84%d8%b7%d8%a7%d9%82%d8%a9-%d8%a7%d9%84%d8%a3%d8%b1%d8%af%d9%86%d9%8a%d8%a9-%d8%aa%d8%aa%d8%b9%d8%a7\/\">Attaqa<\/a> reports. Maersk will conduct feasibility studies first, but the project could become a major source of green fuel for the shipping company\u2019s maritime shipping fleet.<\/p>\n<p><i>Correction: 16 November, 2022<\/i><\/p>\n<p><em>A previous version of this story incorrectly said Norway\u2019s Scatec, Fertiglobe, and Orascom Construction signed the final agreements for their 100 MW Ain Sokhna facility and included incorrect figures on the facility's final capacity.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another step forward to becoming a global green energy hub: Egypt has signed framework agreements with international power companies to construct nine green hydrogen and ammonia facilities in the Suez Canal Economic Zone, the cabinet announced in a series of statements (here, here and here) yesterday. The facilities would collectively produce up to 7.6 mn [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":74824,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[500],"tags":[474,249,11,241,39,458,1085,135],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-74823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-elsewedy-electric","tag-energy","tag-enterpriseclimate","tag-green-ammonia","tag-green-hydrogen","tag-maersk","tag-renew","tag-sovereign-fund-of-egypt","wpautop","entry"],"acf":{"mongo_id":"1f8d7402-6d05-4eae-b3b0-b5bb811be7ab","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/11\/265.jpg","photo_position":"above","related_issue":[74819],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt signs framework agreements for green hydrogen + ammonia plants worth USD 83 bn - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2022\/11\/16\/egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt signs framework agreements for green hydrogen + ammonia plants worth USD 83 bn\" \/>\n<meta property=\"og:description\" content=\"Another step forward to becoming a global green energy hub: Egypt has signed framework agreements with international power companies to construct nine green hydrogen and ammonia facilities in the Suez Canal Economic Zone, the cabinet announced in a series of statements (here, here and here) yesterday. 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The facilities would collectively produce up to 7.6 mn [&hellip;]","og_url":"https:\/\/enterpriseam.com\/climate\/2022\/11\/16\/egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn\/","og_site_name":"Climate","article_published_time":"2022-11-16T02:12:54+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/265.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/climate\/2022\/11\/16\/egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/climate\/2022\/11\/16\/egypt-signs-framework-agreements-for-green-hydrogen-ammonia-plants-worth-usd-83-bn\/"},"author":{"name":"enterpriseam 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