Saudi’s Alfanar, SCZone to launch $3.5bn project to build green hydrogen plant in Egypt

Saudi-headquartered Alfanar has announced it will collaborate on developing a green ammonia facility in Sokhna, Egypt. The company recently signed a memorandum of understanding with the General Authority of the Suez Canal Economic Zone (SCZone), the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority, to launch the project.

The $3.5bn project will use renewable energy sources and produce 500,000 tons of green ammonia from 100,000 tons of green hydrogen per year.

Sabah Al-Mutlaq, chairman of the board of directors of Alfanar Global Development stated, “We have enjoyed a long-standing relationship with Egypt and are thrilled to partner with such esteemed organisations of national importance on this programme. Through this agreement, we will be developing a project to produce green hydrogen and green ammonia.”

Alfanar has had a strong presence in Egypt for many years through its design and energy industry as well as renewable energy development projects. Alfanar was one of the first companies across the globe to operate a 50MW solar project in the Benban Solar Park in the Aswan region of Egypt. The electricity generated from this solar plant currently offsets around 57,000 tons of carbon dioxide emissions per year.

Alfanar, which has been diversifying its portfolio of projects and services globally, works with companies involved in digital solutions, energy, water, oil and gas, social infrastructure and healthcare sectors through its various business divisions and sub-brands.

In June, Alfanar Global Development signed agreements worth $532m with the Arab Organisation for Industrialisation and Benya Holding Group, at the headquarters of the General Authority for Investment and Free Zones in Cairo.

The agreements are focused on localisation of technology for renewable energy and implementation of IT projects, digital solutions, data centres and cybersecurity.

Read: Saudi Arabia’s Alfanar Global Development to invest SAR2bn in Egypt