Globeleq to build 3.6-GW green hydrogen complex in Egypt
Africa-focused independent power producer (IPP) Globeleq announced on Monday a new project that envisages the creation of a 3.6-GW green hydrogen production hub powered by 9 GW of wind and solar capacity in Egypt.
The company said it aims to capitalise on Egypt’s best-in-class wind and solar resources to competitively produce hydrogen and derivate products for export and the local market.
Under a memorandum of understanding with authorities in Egypt, Globeleq aims to develop, build, own, and operate the hydrogen complex in the Suez Canal Economic Zone, planning to realise the project in a phased manner.
The project will be carried out in three stages. The first stage will involve the construction of a pilot electrolyser of 100 MW to produce green ammonia fertilisers.
Other end-uses of the produced green hydrogen, including green fuels, will be considered in the medium and long-terms, it added in a statement.
The company said its ultimate goal is to sell the output of the complex to the local markets and internationally, starting with signing off-take agreements with “leading and creditworthy Egyptian and international companies.”
Globeleq’ signed the memorandum with the General Authority for Suez Canal Economic Zone (SCZONE), the New and Renewable Energy Authority (NREA), the Sovereign Fund of Egypt (TSFE) and the Egyptian Electricity Transmission Company (EETC).
The company is a 70 percent owned by British International Investment and 30 percent Norfund.
“The project also supports both countries’ leadership and ambitions in renewable energy and combating climate change. We look forward to continue working with Globeleq and all the stakeholders involved.” British Ambassador to Egypt, Gareth Bayley said.
Norwegian Ambassador to Egypt, Hilde Klemetsdal, added: “With Globeleq’s ambitious plans, Norway continues to strengthen our investments in green hydrogen in Egypt.”
“This is an example of just the kind of industry solutions that are required for translating the green transition into action. We value our strong cooperation with the Government of Egypt towards the green shift and the fight against climate change.” Klemetsdal stated.
The company has been operating in the Egyptian market since 2003 and has plans for developing solar, wind, battery storage and hydrogen projects there. In 2021, it acquired a 66-MWp photovoltaic (PV) plant in the North African country, located within the Benban solar complex near Aswan.
Globeleq further said it intends entering into long-term offtake agreements with leading and creditworthy Egyptian and international companies, while supporting their decarbonisation plans.
“Bold and rapid collective action is required to put the world on a sustainable pathway. Egypt is a key country for Globeleq, and we are excited to support the Government of Egypt’s ambitious green agenda and contribute to the fight against climate change.” Mike Scholey, CEO of Globeleq, said.
The Egyptian government has ambitious energy transition plans, in addition to hosting COP27, and active steps are being taken to make SCZONE a major hub for green hydrogen, said SCZone chairman Waleid Gamal El-Dein.
“… this partnership reflects the interest of the global entities specialised in investing in such projects as they choose SCZONE as a destination for investment in green fuel projects, to serve the African and international markets.” Gamal El-Dein said.
