Chinese companies could invest as much as USD 15.5 bn in the Suez Canal Economic Zone (SCZone) after a series of agreements, memoranda and other pacts were inked yesterday in Beijing. The occasion: China’s Belt and Road Forum, which got underway yesterday with representatives of some 130 countries in attendance. The big investments in green energy and manufacturing come after sustained sales activity by the SCZone and GAFI, including an HSBC-led roadshow. The summit wraps up today.

GREEN INVESTMENTS WORTH USD 14.8 BN-

Green is the new black when it comes to energy: The SCZone inked agreements for green manufacturing and green energy investments with Chinese companies worth a combined USD 14.75 bn, the Madbouly cabinet said in a statement yesterday.

#1- A new green hydrogen plant is in the works: China’s state-owned China Energy inked a framework agreement with the SCZone to set up a USD 6.75 bn green hydrogen plant spanning 500k square meters, set to annually produce some 1.2 mn tons of green ammonia and 210k tons of green hydrogen. The statement did not reveal a proposed timeline.

China Energy has been interested in Egypt for a while: The company initially signed an MoU with the Madbouly government to conduct a feasibility study for a planet back in December. The company has also shown interest in investing in Egypt’s electricity grid and partnering with the Housing Ministry to manufacture pumps for sewage and water desalination plants.

#2- A green energy-powered potassium chloride facility might be coming our way:China’s privately owned United Energy inked an MoU with the SCZone to build a USD 8 bn renewables powered potassium chloride facility. The facility will kick off with a trial phase producing 100k tons a year and will produce 4.1 mn tons once fully operational. No timeline for the proposed project was presented.

MANUFACTURING PROJECTS WORTH USD 755 MN-

It was a busy day for the SCZone: The SCZone also announced yesterday through a cabinet statement that they had signed agreements with Chinese companies to manufacture iron pipes, tempered glass, and bromine worth a total of USD 755 mn.

#1- China Glass will invest USD 500 mn to establish a glass factory: The factory will produce 243.2k tonnes of tempered glass and 235k of rolled glass every year and export 80% of total output.

#2- Xinxing Ductile Iron Pipes will open a USD 145 mn iron pipe factory: The first phase of the project will produce 250k tons of ductile iron pipes earmarked for export per year.

#3- Shandong Tianyi Chemical want to invest USD 110 mn in a new bromine factory: The factory will export all 140k tons of bromine produced per year.

But where is this all going to fit? With an uptick of investment heading into the Tianjin Economic-Technological Development Area (TEDA) in Sokhna, SCZone head Walid Gamal El-Din and TEDA head Leo Emin agreed to try to expand the 7.3 sq k special economic zone by a further 3 sq k, the statement added.

ICYMI- General Authority For Investment (GAFI) CEO Hossam Heiba told Al Mal TV in an interview in September (watch, runtime: 48:50) that TEDA wants to acquire a land plot 3x the size of the current zone.

ALSO FROM THE FORUM-

#1- We’re bringing in experts to help make our power grid more efficient: The South CairoElectricity Distribution Company inked an MoU with a consortium consisting of Xian Electrical Engineering, China Southern Power Grid, and Huawei Technologies to discuss how they could collaborate to raise the efficiency of Egypt’s energy distribution network and reduce energy waste.

#2- We know more about CTGI’s renewables plan for Egypt: Hydropower developer ChinaThree Gorges International (CTGI) is reportedly looking to set up a 50-GW solar project and a 30-GW wind energy project, a company representative told Chinese state news agency Xinhua, without adding any further information.

#3- Chinese EV, fiber optic cables investments also coming our way? Officials from the SCZone discussed the possibility of opening automobile and fiber optic cables factories and with Chinese companies, an SCZone statement said. The delegation also discussed investment opportunities in the Egyptian market with logistics and supply chain integrator Zheshang Development Group Company.

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