Scatec, Germany’s PtX Fund sign €30m grant for Egypt’s green hydrogen project
Norwegian renewable energy producer Scatec signed on Tuesday a €30 million grant agreement with the PtX Development Fund to finance a green hydrogen project in Egypt, as per a Cabinet statement.
Established by the German Federal Ministry for Economic Cooperation and Development and KfW, and run by KGAL, the PtX Development Fund is aimed at supporting Power-to-X projects in developing and emerging countries. This is the first grant approved by the PtX Fund.
Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat witnessed the signing of the agreement taken place on the sidelines of the Hamburg Sustainability Conference in Germany.
The Egyptian green hydrogen project aims to stimulate the green transition in the Suez Canal Economic Zone and promote climate neutrality in resource-intensive industries.
The Egyptian green hydrogen project aims to stimulate the green transition in the Suez Canal Economic Zone and promote climate neutrality in resource-intensive industries. The project’s key features include:
- Leveraging Renewable Energy: Utilising Egypt’s abundant wind and solar resources to produce green hydrogen.
- Job Creation: Generating 1,330 jobs during construction, operation, and maintenance.
- Environmental Impact: Reducing carbon emissions by 140,000 tons annually.
- Industrial Transformation: Laying the foundation for a sustainable transformation of Egypt’s industry.
The project is expected to produce 70,000 tons of green ammonia annually, equivalent to 140,000 tons of CO2 emissions reduction per year. This will contribute significantly to Egypt’s efforts to reduce its carbon footprint and transition to a sustainable economy.
The Egyptian government has actively supported green hydrogen initiatives, establishing the National Council for Green Hydrogen and launching a national strategy.
Minister Al-Mashat emphasised the importance of green hydrogen in the global energy transition and highlighted Egypt’s potential as a leading player in this field. She reaffirmed the government’s commitment to supporting the development of a green hydrogen economy.
“We are pleased that our Egypt Green Hydrogen project has been recognised with this €30 million grant from the German government and KfW Group through the PtX Development Fund. This achievement is a testament to the maturity of the project and reaffirms the broad support we have for this project,” says Scatec CEO Terje Pilskog in a company statement.
This project marks a significant milestone in Egypt’s journey towards a sustainable and greener future. It showcases the country’s ability to attract international investment and its dedication to environmental protection.
Attribution: The Egyptian Cabinet & Scatec
