RIYADH: Over $40 billion of green hydrogen and renewable energy investments could be on the way to Egypt’s Suez Canal Economic Zone after a host of new agreements.
The North African country’s government signed seven memorandums of understanding with international developers which could see the money arrive over a 10-year period.
Investment of about $12 billion is expected for a pilot program, followed by a further $29 billion for the first phase.
Ayman Suleiman, CEO of the Sovereign Fund of Egypt, was one of those present for the signing of the agreements.
He said: “The Fund receives constant and increasing interest from investors in green hydrogen projects, and today’s signature reflects the increasing interest of companies to join the Egyptian Green Hydrogen Program, which reflects the state’s going in the right direction by creating a landmark, fully funded program.”
Egypt’s Prime Minister Mostafa Madbouly also witnessed the signing of the deals, which included agreements with the General Authority for the Suez Canal Economic Zone, and the New and Renewable Energy Authority.
Representatives from the private sector included Kofi Osu Bembah, CEO of Bash Global; Jawo Kunha, CEO of operations at Smart Energy; and Ihab Damian, from Gamma Construction & Meridiam.
Other businesspeople present were Mohammed Tawakkul, board member of Al-Tawakkul Gila; Yahya Abu Al-Hassan, business development manager of IMM Power, and Kamel Abdulhamid Al-Sawi, president of Egypt branch of United Energy Group.
Planning Minister Hala El-Said added that Egypt’s sovereign fund is seeking to promote the country as a regional hub for green energy.
The minister also set out how the fund has already succeeded in launching Africa’s first integrated green ammonia production plant, and the latest deals mark the beginning of new investment partnerships and projects that all contribute to achieving the goals of the National Green Hydrogen Strategy.
That plan, agreed in November, is part of a drive to see Egypt contribute 5-8 percent to the global hydrogen market.
The strategy also targets reducing carbon emissions by 40 million tonnes per year by 2040.
Also in November, the first shipment of renewable ammonia was sent from Fertiglobe’s factory in Egypt, in what was described as a “breakthrough in producing and supplying renewable ammonia to the world” by the company’s CEO Ahmed El-Hoshy.
In what was a landmark month for Egypt’s green energy plans, November 2023 also saw the Suez Canal Economic Zone sign a $15.6 billion agreement with prominent Chinese companies to boost renewable fuel manufacturing initiatives.
The agreements are set to produce around 9,000 job opportunities and encompass the establishment of 11 projects.
