UAE’s Masdar signs agreements to develop green hydrogen plants in Egypt

UAE clean energy company Masdar and Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding Group, have signed two MoUs with Egyptian state-backed organisations to cooperate on the development of green hydrogen production plants in the Suez Canal Economic Zone and on the Mediterranean coast.

#Masdar and Hassan Allam Utilities have signed two agreements with leading Egyptian state-backed organizations to cooperate on the development of #GreenHydrogen production plants in the Suez Canal Economic Zone and on the Mediterranean coast. pic.twitter.com/YQ6LRP7Zpi

— Masdar (@Masdar) April 24, 2022

The Egyptian organisations concerned include the New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, The Sovereign Fund of Egypt, and The General Authority for Suez Canal Economic Zone.

Mostafa Kamal Madbouly, Prime Minister of the Arab Republic of Egypt stressed 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.

Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and chairman of Masdar, said, “Today’s partnership agreements to explore the development of green hydrogen production demonstrates the strength of the close relationship between the United Arab Emirates and the Arab Republic of Egypt. 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 and chairperson of The Sovereign Fund of Egypt, 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, official news agency WAM reported.

Mohamed Jameel Al Ramahi, CEO of #Masdar: “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.” pic.twitter.com/j4TB8J7UAP

— Masdar (@Masdar) April 24, 2022

Yehia Zaki, chairman of SCZONE, said, “Today’s signing is the fifth of its kind for green fuel production projects inside Sokhna zone, as SCZONE has a distinctive location and pivotal ports overlooking the Red and the Mediterranean Sea. SCZONE is qualified to be a regional Hub for ship bunkering. All the companies now are conducting feasibility studies for the projects in detail to sign and announce the actual contracts in coinciding with the COP27 climate summit next November.”

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.

“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,” he added. “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.”

Egypt hosts abundant solar and wind resources that allow renewable power generation at competitive costs. The country is also located within close proximity to markets where demand for green hydrogen is expected to grow the most, providing opportunity for export. Meanwhile, Masdar has invested in a portfolio of renewable energy assets with a combined value of more than $20bn, and a total capacity of more than 15GW.

In December, it was announced that Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company and ADNOC will partner to create a global, clean-energy powerhouse to spearhead the drive to net-zero carbon by 2050.