Egyptian hydrogen advances further with new announcement at COP 27

AMEA Power enters agreement to develop 1 GW green hydrogen plant at Ain Sokhna/SCZone, FID within three years, operations expected in ’27; huge plant to be developed in two 500 MW phases

Dubai-based AMEA Power announced yesterday that it signed a Framework Agreement with the Government of Egypt to develop a 1,000 MW green hydrogen project, for the production of green ammonia focused on the export market.

Announced on the side lines of the COP 27 Climate Change Conference in Sharm El-Sheikh, Egypt, the project will have a capacity to produce 800,000 tonnes of green ammonia per year for domestic and international export. It will be located at the coastal town of Ain Sokhna in the Suez Governorate.

AMEA Power has partnered with The Sovereign Fund of Egypt, Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Suez Canal Economic Zone (SCZone) to deliver the project.

The plant will be developed in two 500 MW phases to de-risk the project and ensure it benefits from technology efficiency improvements and declining equipment prices. Operations on the first phase of the project are expected to commence in 2027.

AMEA Power is in advanced discussions with a number of European, Chinese and Japanese companies to secure a long-term off taker for the green ammonia, according to a company statement.

The company is also in discussions with the Egypt Hydrocarbon Corporation, a subsidiary of Egypt’s Carbon Holdings, to potentially provide it with a portion of the green hydrogen production to support the development of green industries in the country.

AMEA Power has already completed a feasibility study addressing legal, technical and financial aspects of the project. Front End Engineering Design (FEED) is scheduled to start in January 2023, with FID expected within the next 24 – 36 months.

“This project is the first of several large-scale clean energy projects that AMEA Power will develop across the region as the Company enters a new phase in its journey and begins to scale up operations across Africa,” said Hussain AlNowais, Chairman of AMEA Power.

“The signing of this binding agreement is a testament to TSFE’s ability to execute on its role in attracting private investment into strategic sectors,” said Ayman Soliman, Chief Executive Officer of The Sovereign Fund of Egypt.

The project is aligned with Egypt’s Integrated Sustainable Energy Strategy (ISES), which aims to reach renewable energy targets of 42% by 2035. 

Energy & Utilities first reported on the project in April, reporting that the green hydrogen and ammonia facility will be located in the Ain Sokhna Industrial Zone in the SCZone, and will be powered by renewable energy plants built in close proximity on land allocated by NREA. Since then, the amount of forecast ammonia production has doubled.

Announcement of the new framework agreement marks one of several breakthroughs Egypt has seen in the hydrogen and renewable energy at COP 27. E&U reported yesterday that the Egypt Green consortium including Norway’s Scatec announced start of work on a plant with 100 MW electrolyser capacity to produce green hydrogen, also to be located in Ain Sokhna.

Photo credit: AMEA Power