Egypt Secures Major $15bn Investment from Acwa Power

Acwa Power will invest $15B in Egypt by 2028, focusing on green hydrogen, wind power, and solar projects, boosting the country’s renewable energy efforts.

Saudi-based energy company Acwa Power plans to invest $30 billion in Africa by 2030, with Egypt receiving half of that amount. Over the next six years, Acwa Power will invest $15 billion in Egypt alone. This move is part of the company's strategy to quadruple its total investment across the continent.

Green Ammonia and Hydrogen Projects in Egypt

A key focus of Acwa Power's investment in Egypt will be a flagship green hydrogen project. This plant is set to produce 600,000 tonnes of green ammonia annually, making it one of the largest in the world. The only larger project will be the $8.5 billion NEOM Green Hydrogen Project in Saudi Arabia which will produce around double that amount.

Acwa Power plans to open its green ammonia plant in Egypt by 2028. The company signed an agreement with the Egyptian government in December 2023. It expects to make its final investment decision sometime in 2024. Acwa Power will start by investing over $4 billion in the project. The goal is to eventually produce 2 million tonnes of green ammonia each year.

Acwa Power's Renewable Energy Projects in Egypt

Beyond hydrogen and ammonia production, Acwa Power has other major plans in Egypt. The company is investing $1.5 billion in a 1.1-gigawatt wind power project on the Red Sea. This wind farm will have the capacity to power over one million homes. 

Acwa Power runs five solar projects in Upper Egypt costing a total of $2 billion. The company is also building a strong portfolio in renewable energy. They have expressed excitement to do more in the solar energy field. So, Acwa Power is actively looking for new opportunities in photovoltaic technology.

Water Desalination Efforts in Egypt

Acwa Power is also in talks with the Egyptian government about desalination projects. While no formal agreement is in place yet, Egypt aims to increase its desalination capacity. Currently, the country produces 1.3 million cubic metres of desalinated water per day. By 2050, Egypt plans to increase that to 8.85 million cubic metres daily. Acwa Power's potential involvement in these projects could play a crucial role in achieving this target.

Acwa Power Expanding Investments Across Africa

Acwa Power plans to invest heavily in Egypt, which will get half of the company’s African investments. They also aim to grow in other countries. Acwa will spend the remaining $15 billion on renewable energy projects in Morocco and South Africa. It is also in discussions with Tunisia and has agreed to build a desalination plant in Senegal.

The company wants to strengthen its presence in Egypt, Morocco, and South Africa. At the same time, they are open to buying companies in new markets. They will act on these opportunities when the timing is right.

The Growing Potential of Green Hydrogen

Acwa Power is investing in green hydrogen, especially in Egypt and Saudi Arabia. This reflects the growing global interest in this new energy source. Green hydrogen is made using renewable energy, so it has the potential to change the global energy market. Yet, the technology is still new. The production process also uses a lot of energy, which raises some doubts.

Despite this, experts predict strong growth for green hydrogen. Deloitte believes the global market could reach $642 billion by 2030. By 2050, it could grow past $1.4 trillion. Deloitte also expects annual export revenues from green hydrogen to hit $280 billion by 2050. North Africa stands to gain, with potential yearly revenues of $110 billion.

Strategic Investments for the Future

Acwa Power is investing in green ammonia, wind power, and solar energy. This shows its clear shift toward renewable energy in Africa. The company also has a growing number of projects in Egypt and across the continent. So Acwa Power is positioning itself as a leader in the global energy transition. By focusing on Egypt's renewable sector, Acwa Power is expanding its reach in Africa. The company is set to shape the future of clean energy.
 

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