Saudi’s ACWA Power inks $4bn green hydrogen deal with Egypt

Saudi Arabian energy provider and developer, ACWA Power, says it has formalised a framework agreement with Egyptian state-owned entities for the establishment of a green hydrogen project within the Suez Canal Economic Zone (SCZONE).

The agreement, succeeding an initial Memorandum of Understanding (MOU) inked in December 2022, delineates plans for the inaugural phase of a green hydrogen project. This phase, driven by wind and solar plants, aims to produce 600,000 tonnes annually of green ammonia, representing an investment exceeding $4bn.

The subsequent phase is anticipated to possess a potential capacity of 2 million tonnes annually.

The signatories to the agreement include ACWA Power, The Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA).

With this recent venture, ACWA Power’s portfolio in Egypt expands to a total of 5 assets, comprising projects in various stages from operation to advanced development, all centered around renewable energy. Collectively, these projects contribute to a substantial power generation capacity of 1.4 GW.

ACWA Power is leading a consortium responsible for developing the world’s inaugural utility-scale green hydrogen plant in the northwest region of Saudi Arabia. The NEOM Green Hydrogen Project — a collaboration between ACWA Power, Air Products, and NEOM — targets an annual production capacity of 1.2 million tonnes of green ammonia.

In a recent milestone, ACWA Power initiated the construction of its second green hydrogen initiative in Uzbekistan. The initial phase of this project will generate 3,000 tonnes of green hydrogen annually, with the subsequent phase harnessing 2.4 GW of wind energy to produce 500,000 tonnes of green ammonia per year.

The company also formalised agreements during COP28 for additional green hydrogen projects in Jordan and Indonesia, highlighting its commitment to advancing sustainable energy solutions on a global scale.

This strategic move aligns with ACWA Power’s continued dedication to pioneering environmentally friendly projects, fostering collaboration with key stakeholders, and contributing to the global transition toward cleaner and sustainable energy sources.