Egypt’s Suez Canal Economic Zone signs $14.75 billion energy deals

Egypt’s Suez Canal Economic Zone (SCZone) has signed on Tuesday two green energy agreements worth up to $14.75 billion with Chinese companies.

Walid Gamal El Din, chairman of SCZone, signed a framework agreement worth $6.75 billion with Lyu Ze Xiang, chairman of China Energy, to develop green ammonia and green hydrogen projects in the Sokhna Industrial Zone.

With an annual production of 1.2 million tons of green ammonia and 210,000 tons of green hydrogen, the project will cover a sprawling area of 500,000 square metres.

Gamal El Din also signed a memorandum of understanding with Song Yu, executive chairman of Hong Kong-listed United Energy Group, to establish a potassium chloride production complex with an expected investment of up to $8 billion. The project will have an output of 4.1 million tons of potassium chloride, 20% percent which shall be exported to the local market.

Egyptian Prime Minister Moustafa Madbouly attended the signing ceremony of the two agreements, which took place on the sidelines of the third Belt and Road Forum in Beijing.

The agreements are part of Egypt’s ambitious renewable energy targets as the North African country is aiming for 42 percent of its energy to come from renewable sources by 2035. The investments in green ammonia, green hydrogen, and potassium chloride production are expected to diversify Egypt’s energy sources and lower its reliance on fossil fuels.