Egypt approves $3bn waste-to-hydrogen plant
Egypt’s Suez Canal Economic Zone has given preliminary approval for H2 industries to develop a $3bn waste-to-hydrogen plant in Port Said
Egypt’s Suez Canal Economic Zone has given preliminary approval for H2 industries to develop a $3bn waste-to-hydrogen plant in Port Said.
The 1GW hydrogen centre will receive four million tonnes of organic waste and non-recyclable plastic a year and will produce 300,000 tonnes of green hydrogen a year, according to a report in The National.
According to the report, which quoted Michael Stutsch, CEO of H2 Industries, the plant is at the feasibility study stage, which will take one and a half months to complete, before it is subject to final approval from the General Authority of the Suez Canal Economic Zone (SCZone).
If the project is approved, H2 Industries is planning to begin work on the plant immediately. The waste-to-hydrogen plant will be developed in three phases, with the final phase to be completed within 5 years.
“We really want to deliver the first green hydrogen [from the plant] at the end of 2025, beginning of 2026,” Stusch told The National.
Energy & Utilities recently reported that the Egyptian government was planning to announce a $40bn hydrogen strategy before June 2022, which will include plans for a production capacity of 1.4GW by 2030.
The National Committee in charge of preparing the hydrogen strategy is coordinating with the European Bank for Reconstruction and Development (EBRD) in order to select a consultant to determine the technical, legal and financial requirements for developing hydrogen projects in Egypt.
Energy & Utilities reported in April 2021 that EBRD was assisting the Egyptian government with studies for developing green hydrogen.
Speaking at the World Hydrogen Mena online conference on 21 April, Gabriel Lastours, head of energy Middle East and Africa at EBRD, said that the development bank was doing studies for the governments in Egypt and Morocco to help them prepare for launching green hydrogen programmes and developments.
“The EBRD is working with governments in Egypt and Morocco on studies to assess how green hydrogen could contribute to the decarbonisation agenda and mapping out low carbon pathways for these countries,” said Lastours.
Lastours said that while funding ambitious green hydrogen projects would present a challenge, that financing would be available for a variety of sources for well-structured projects.
“There will be a lot of funds available from development institutions, such as EBRD, the EU innovation fund and climate funds.”
In order for countries in the Middle East and North Africa to attract the high levels of investment required, governments will be required to play a key role in implementing adequate legislation and infrastructure.
“There needs to be some support to the government and incentives for the right regulations to give confidence to investors for hydrogen projects and transport and storage,” said Lastours.
“There will also be environmental and safety requirements, and EBRD is doing studies to help governments in Egypt and Morocco address these challenges – and hopefully that will kickstart the new green hydrogen value chain in these countries.
There was a number of announcements about plans for major clean hydrogen projects in Egypt in 2021.
Energy & Utilities reported in October that Norway’s Scatec and Fertiglobe, a joint venture of the local Orascom Construction Industries (OCI) and UAE-based Abu Dhabi National Oil Company (Adnoc), had entered into an agreement with the Sovereign Fund of Egypt (SFE) to develop a 100MW electrolyser facility to produce green hydrogen for green ammonia production in Egypt.
In July 2021, Energy & Utilities reported that the Egyptian Electricity Holding Company (EEHC) and Egyptian Natural Gas Holding Company (EGAS) had signed an initial agreement with Italian energy company Eni to cooperate on plans for green and blue hydrogen production in Egypt.
Egypt and Eni will work together to assess the technical and commercial feasibility of targeted blue and green hydrogen projects in Egypt.
The parties will conduct a study into joint projects to produce green hydrogen, using electricity generated from renewables, and blue hydrogen, through the storage of carbon dioxide (CO2) in depleted natural gas fields.
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