EBRD lends $80mn for Egypt’s first green hydrogen facility
The European Bank for Reconstruction and Development (EBRD) has announced on Tuesday an $80 million loan for Egypt Green project to establish country’s first green hydrogen production facility.
EBRD said in a statement the loan has been provided also to Scatec, a Norway-based integrated independent power producer, Orascom Construction, and the Sovereign Fund of Egypt (TSFAE), a state-owned, privately managed investment fund.
The financing will be used to acquire and construct a 100-megawatt (MW) electrolyser facility to be powered by renewable energy, the statement added.
The plant will deliver up to 15,000 tonnes of green hydrogen annually, when it fully developed. Which, will be used as an input for the production of green ammonia to sell on the Egyptian and international markets.
The ammonia production is an energy-intensive process that emit about 1.8 percent of global carbon emissions, as it supports nitrogen fertilizer production that is important for the agricultural crops, which provide food to about 40 percent of the world’s population.
EBRD explained that reducing the amount of carbon dioxide produced during the industrialisation process is the way to help the world achieve its goals of reaching net zero emissions by 2050.
This historic project will be the first step towards decarbonisation of Egypt’s ammonia sector and will serve as a benchmark for future green hydrogen projects.
