EGYPT – Africa-focused renewable energy independent power company, Globeleq, has signed a Memorandum of Understanding with Egyptian authorities to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone.
The signatories to the agreement include the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC).
“Bold and rapid collective action is required to put the world on a sustainable pathway. Egypt is a key country for Globeleq, and we are excited to support the Government of Egypt’s ambitious green agenda and contribute to the fight against climate change,” Mike Scholey, CEO of Globeleq.
Globeleq will be the lead developer and investor in the project and will develop, finance, build, own and operate the green hydrogen project. The project will be developed in 3 phases, totalling 3.6 GW of electrolysers and around 9 GW of solar PV and wind power generation.
The first phase will involve a pilot project using a 100 MW electrolyser, and will initially focus on green ammonia fertilisers, while considering other end-uses of green hydrogen in the medium and longer term, including green fuels.
Globeleq intends to enter into long-term off-take agreements with leading and creditworthy Egyptian and international companies while supporting their decarbonisation plans.
“We are pleased to partner with Globeleq, one of the major renewable energy companies in the UK and globally, and this partnership reflects the interest of the global entities specialised in investing in such projects as they choose SCZONE as a destination for investment in green fuel projects, to serve the African and international markets,” Waleid added.
Capitalising on Egypt’s best-in-class wind and solar PV resource, well-developed infrastructures, and the Egyptian Government’s investment-friendly regulatory framework, Globeleq aims to competitively produce hydrogen for exports and the local market.
Egypt’s unique geographical location, at the crossroads of Africa, Europe, and Asia, with about 13% of the global trade flowing through the Suez Canal, puts the country in a position to become a global green energy hub.