Masdar to develop 4 GW green hydrogen plants in Egypt by 2030

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UAE based renewable energy major Masdar and Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding Group, have signed two MoUs with Egypt for the development of green hydrogen production plants in the Suez Canal Economic Zone and on the Mediterranean coast.

The green fuel production projects will be inside Sokhna zone as SCZONE has a distinctive location and pivotal ports overlooking the Red and the Mediterranean Sea.

“These agreements represent a vital step forward in the development of the green hydrogen economy for both the UAE and Egypt, and will play a significant role in our two nations’ decarbonization efforts. By working with partners such as Hassan Allam Utilities, we can help the green hydrogen market achieve its full potential over the coming years and play its part in supporting the global energy transition,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

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Amr Allam, Chief Executive Officer of Hassan Allam Holding, said, “Our drive into the green energy and infrastructure space, including solar and wind power generation, was all about contributing to a more sustainable future. Through this partnership with Masdar we are looking to harness the leading edge of technology to make a difference in Egypt by leveraging the country’s abundant sources of green energy.

He said that in the first phase of the project, Hassan Allam Utilities and Masdar aim to establish a green hydrogen manufacturing facility, which would be operational by 2026, producing 100,000 tonnes of e-methanol annually for bunkering in the Suez Canal.

The electrolyser facilities in the Suez Canal Economic Zone and on the Mediterranean could be extended to up to 4 GW by 2030 to produce 2.3 million tonnes of green ammonia for export as well as supply green hydrogen for local industries. Both Masdar and Hassan Allam Utilities see Egypt as a hub for green hydrogen production, targeting the bunkering market, export to Europe, and boosting local industry.

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Egyptian Prime Minister Mostafa Kamal Madbouly expressed his happiness at this signing and said that the state is working to encourage investment in green energy projects, due to Egypt’s potential to become an important pivotal and regional hub in this vital sector.

Sultan bin Ahmed Al Jaber, Chairman of Masdar, said, “These projects will build on the UAE’s and Masdar’s position as an early mover in the global hydrogen market and expand our capacity to deliver zero carbon energy solutions. As our two countries prepare to host the next two COPs, we look forward to working with our partners in Egypt to make practical advances in the energy transition that will provide significant benefits for the economy and the climate.”

Dr Hala El Said, Minister of Planning and Economic Development, stressed that Egypt has abundant solar and wind energy resources that would provide a suitable location for renewable energy projects at a competitive cost. Along with its proximity to global markets that are looking to import green hydrogen, this will allow significant growth for this sector in the future, and the agreements are in line with “Egypt Vision 2030.”

As per the official statement of Masdar, Egypt is also located within close proximity to markets where demand for green hydrogen is expected to grow the most, providing robust opportunity for export. Driven by green hydrogen’s export potential, its ability to attract large-scale foreign direct investment and opportunities to contribute to Egypt’s efforts to optimize generation costs and increase the share of renewables in the country’s energy mix to 42 percent by 2030, the country is currently revising its 2030 renewable energy strategy to include green hydrogen. Its green hydrogen strategy is expected to be issued by October 2022.