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“Egypt Green Hydrogen” project wins € 397 m contract to export green fuel to Europe
The “Egypt Green Hydrogen” project in the Suez Canal Economic ZONE (SCZONE)won a contract worth € 397 million to export green fuel to Europe within the H2Global auction.
The H2Global pilot auction is funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK).
Under the contract, Egypt will extend renewable ammonia supplies to Euope at 1,000 euros per ton until 2033, with production based on the use of green hydrogen.
According to the contract, quantities of renewable ammonia will be supplied starting from a potential level of up to 19,500 tons in 2027, with the possibility of increasing quantities in total to the level of up to 397,000 tons by 2033.
This falls within the framework of the SCZONE commitment to implementing the directives of the political leadership towards localizing the green fuel industry and achieving Egypt’s strategy of diversifying energy sources and producing clean energy.
“Egypt Green Hydrogen” project, which is located in Sokhna, was established by “Fertiglobe”, “Scatec ASA”, “Orascom Construction”, and the Sovereign Fund of Egypt.
The project guarantees the supply of green hydrogen necessary for renewable ammonia production throughout the contract period.
Egypt’s unique location and proximity to Europe also contributed to adding a competitive advantage to the “Egypt Green Hydrogen” project, which in return helped enhance Egypt’s capabilities in producing green hydrogen and green ammonia.
“SCZONE has a full commitment towards achieving Egypt’s goals, and implementing the directives of the political leadership regarding the strategy of localizing the green fuel industry and exporting it to regional and international markets, through cooperation with the Egyptian concerned entities to accelerate the pace of production, and providing renewable energy and the necessary infrastructure to establish these projects. Efforts are also being exerted to exploit SCZONE industrial zones’ capabilities to localize the green fuel complementary industries, such as wind turbines, solar panels, and electrolyzers. All these efforts were carried out in parallel with the cooperation with various international institutions to support financing, production, and developing pricing plans for the green fuel industry, to meet the global need to diversify energy sources and reduce carbon emissions.” Waleid Gamal El Dien, Chairman of SCZONE said.
“The availability of renewable energy sources, trained labor, and infrastructure readiness has achieved Egypt’s leadership in the green energy production field and gave a competitive advantage to our partners in this field. This also confirmed Egypt’s ability to maximize the benefits of its capabilities and its determination to achieve its vision. Egypt is making unremitting efforts to localize the green fuel industry by establishing the National Green Hydrogen Council, in addition to, issuing special legislation and incentives related to the production of green fuel and participating in the infrastructure and feeding industries necessary for it.” he added.
The “Egypt Green Hydrogen” project was inaugurated during the 27th United Nations Climate Change Conference (COP27) hosted by Egypt in Sharm El-Sheikh in November 2022, at an investment cost amounting to $417 million.
The project succeeded, through its pilot production, in exporting the first green ammonia shipment in the world in November 2023 to India.
SCZONE succeeded in August 2023 in hosting the first ship bunkering operation with green fuel in the Eastern Mediterranean and Africa as part of its efforts to support the use of green fuel in maritime activities in addition to its production.
SCZONE also seeks to encourage investors in its industrial zones to use green fuel in manufacturing operations to obtain green products. All these efforts qualified it to be awarded the Sustainable Development Goals Model Partnership Certificate for Economic Zones “SDG Model Zone Partner” from the Global Alliance of Special Economic Zones “GASEZ”.
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