UAE’s AMEA Power, Egypt sign deal for 1,000MW green hydrogen project
Dubai-based AMEA Power said on Wednesday it had signed a framework agreement with Egypt to establish a 1,000-megawatt green hydrogen project for the production of green ammonia. The agreement was announced at COP27 in Sharm El-Sheikh.
Located at the coastal town of Ain Sokhna in the Suez , the green hydrogen project will have a capacity to produce 800,000 tons of green ammonia per year for domestic and international export.
AMEA Power has partnered with the Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission, the New and Renewable Energy Authority (NREA), and the Suez Canal Economic Zone to develop the project.
“The world is entering a new era of clean energy deployment, where emerging solutions like green hydrogen will present huge opportunities for investment, job creation and countries like Egypt to become major hubs for clean energy,” AMEA chairman Hussain Al Nowais said.
“This project is the first of several large-scale clean energy projects that AMEA Power will develop across the region.” Al Nowais added.
Egypt to become Green Hydrogen Hub
AMEA Power said in a statement that the project will support the long-term vision of Egypt as it aims to become a hub for green hydrogen production.
The hydrogen plant will be developed in two 500MW phases to “de-risk” the project and ensure it benefits from technology efficiency improvements and declining equipment prices, AMEA added.
The clean energy project is aligned with the Egyptian government’s Integrated Sustainable Energy Strategy (ISES), which aims to reach renewable energy targets of 42 percent by 2035.
AMEA is in “advanced discussions” with European, Chinese, and Japanese companies to secure a long-term buyer for the green ammonia, it added.
The company is also in talks with the Egyptian Hydrocarbon Corporation to provide a portion of the green hydrogen production to support the development of green industries in Egypt.
AMEA Power has already completed a feasibility study for the project, saying a final investment decision was expected within the next two to three years. Operations on the first phase of the project are expected to herald in 2027.
“This great success marks a major milestone for Egypt’s green strategy and was only possible with the persistence of all government sponsors and the partners’ belief in the potential of Egypt as a green hydrogen hub,” Ayman Soliman, chief executive of the Sovereign Fund of Egypt, stated.
“Egypt has put tremendous effort into the development of its Green Hydrogen Program and has made incredible progress reaching this stage in a matter of months.” Soliman added.
