Saudi Developer Inks $4B Deal for Green Hydrogen-Ammonia Plant in Egypt

Saudi-listed ACWA Power, a global leader in water desalination, energy transition, and a trailblazer in green hydrogen, has formally entered into a framework agreement, building on the Memorandum of Understanding (MoU) inked on December 7, 2022. The agreement outlines the initial phase of a groundbreaking green hydrogen project in Egypt, targeting a production capacity of 600,000 tonnes-per-year of green ammonia. This transformative initiative entails a substantial investment exceeding USD 4 billion, with plans for expansion into a second phase with a potential capacity reaching 2 million tonnes-per-year.

Signatories to the agreement include ACWA Power, 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). This framework agreement represents a crucial milestone in the advancement of this large-scale Green Hydrogen facility.

The framework delineates the first phase's development, focusing on a green ammonia project with a capacity of 600,000 tonnes-per-year, propelled by wind and solar plants. It signals ACWA Power's commitment to contributing to a larger green hydrogen project in Egypt, potentially reaching a staggering capacity of two million tonnes-per-year of green hydrogen. ACWA Power, with a proven track record in developing substantial renewable projects, aims to ensure a steady supply of clean and cost-effective energy for Egypt. This new project amplifies ACWA Power's presence in Egypt, with a total of five assets in operation, under construction, or in advanced development, all dedicated to renewable energy and boasting a cumulative power generation capacity of 1.4 GW.

The Egypt project significantly bolsters ACWA Power's expanding green hydrogen portfolio. The NEOM Green Hydrogen Project, a collaboration between ACWA Power, Air Products, and NEOM, is well underway in the northwest of Saudi Arabia. Set to be the world's first utility-scale green hydrogen plant, it targets an annual production capacity of 1.2 MT of green ammonia. Meanwhile, ACWA Power broke ground on its second green hydrogen endeavor in Uzbekistan on November 27th. The initial phase aims for an annual production of 3,000 tonnes of green hydrogen, with plans for expansion into a second phase, ultimately harnessing 2.4 GW of wind energy to generate 500,000 tonnes of green ammonia annually.

ACWA Power, further solidifying its commitment to green hydrogen, inked additional agreements during COP28 for similar projects in Jordan and Indonesia. These strategic moves underscore ACWA Power's pivotal role in shaping the future of clean energy, fostering sustainable practices globally, and positioning itself as a key player in the dynamic landscape of green hydrogen production.