Africa-focused independent power producer (IPP) Globeleq announced on Monday its framework agreement with Egyptian authorities to jointly develop 3.6-GW green hydrogen facility within the Suez Canal Economic Zone.
Globeleq’s signed the agreement with General Authority for Suez Canal Economic Zone (SCZone), the Sovereign Fund of Egypt (TSFE), the New and Renewable Energy Authority (NREA), and the Egyptian Electricity Transmission Company (EETC).
The signing ceremony take part on the side line of the 27th UN climate change (COP27) in Sharm El Sheikh, Egypt.
Under the agreement, 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.
Over the next 12 years, the project will be developed in three phases, totalling 3.6 GW of electrolysers powered by up to 9 GW of solar PV and wind energy, according to company’s statement.
The first phase will include a pilot project which will produce 100,000 tons of green ammonia from hydrogen, mainly targeting exports to Europe and Asia for use in fertilisers. It is expected to start operations by 2026-27.
Mike Scholey, CEO of Globeleq, said: “We are delighted to support the Government of Egypt on their ambitious journey.”
Egypt has an ambitious energy transition plan, and active steps are being taken to make SCZone a major hub for green hydrogen, Waleid Gamal chairman of SCZone, added.
Gamal continued the partnership highlights the interests of the private sector in investing in such projects as they choose SCZONE as a destination for investment in green hydrogen and green fuels, which serve both the African and global markets.
In August, Globeleq and its partners have signed the memorandum of understanding of the project.
At present, Globeleq has more than 1.5 GW of operational power plants in Africa and is building some 722 MW, with an additional 2 GW of projects are currently under development.