ACWA Power has signed the framework agreement, following the MoU that was signed on December 7, 2022 to outline the development of the first phase of the green hydrogen project in Egypt. The project will have a capacity of 600,000 tonnes-per-year of green ammonia, with an investment in excess of $4 billion. Further, the project will be scaled up to a second phase with a potential capacity of 2 million tonnes-per-year.
The agreement was signed between ACWA Power and The Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA). Furthermore, the framework agreement lays out the development of the first phase of a green ammonia project with a capacity of 600,000 tonnes-per-year powered by wind and solar plants, with the intention of working on a larger green hydrogen project in the country which could have a capacity of up to two million-tonnes-per-year of green hydrogen.
Earlier this month, ACWA Power collaborated with PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned power provider, and PT Pupuk Indonesia, a state-owned fertiliser and chemical company, to build the Garuda Hidrogen Hijau green hydrogen project in Indonesia. The declaration was made in Dubai at the COP28 side events. The CEO of Pupuk Indonesia Holding Company and the CEO of PLN signed the deal with ACWA Power.
REGlobal’s Views: ACWA Power has been present in Egypt since 2015. The company has various other renewable energy projects in Egypt, that are under implementation or already operational. These include a 120 MW solar PV project in Benban, a 200 MW solar PV facility in Kom Ombo, and the 1.1 GW Suez Wind Energy project. This large-scale green hydrogen project will help make ACWA Power one of the top clean energy companies in Egypt.
