ACWA Power, a Saudi Arabian energy provider and developer, has officially established a framework agreement with Egyptian state-owned entities to create a green hydrogen project in the Suez Canal Economic Zone (SCZONE).
The agreement, succeeding an initial Memorandum of Understanding (MOU), delineates plans for the inaugural phase of a green hydrogen project. This phase, driven by wind and solar plants, aims to produce 600,000 metric tonnes annually of green ammonia, representing an investment exceeding $4 billion.
The subsequent phase is anticipated to possess a potential capacity of 2 million metric tonnes annually.
The 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).
With this recent venture, ACWA Power’s portfolio in Egypt expands to a total of 5 assets, comprising projects in various stages from operation to advanced development, all centred around renewable energy. Collectively, these projects contribute to a substantial power generation capacity of 1.4 GW.
ACWA Power is leading a consortium responsible for developing the world’s inaugural utility-scale green hydrogen plant in the northwest region of Saudi Arabia. The NEOM Green Hydrogen Project—a collaboration between ACWA Power, Air Products, and NEOM—targets an annual production capacity of 1.2 million metric tonnes of green ammonia.
In a recent milestone, ACWA Power initiated the construction of its second green hydrogen initiative in Uzbekistan. The initial phase of this project will generate 3,000 metric tonnes of green hydrogen annually, with the subsequent phase harnessing 2.4 GW of wind energy to produce 500,000 metric tonnes of green ammonia per year.
The company also formalised agreements during COP28 for additional green hydrogen projects in Jordan and Indonesia, highlighting its commitment to advancing sustainable energy solutions on a global scale.
This strategic move reflects ACWA Power’s ongoing commitment to spearheading environmentally friendly initiatives, collaborating with key stakeholders, and playing a role in the global shift towards cleaner and sustainable energy sources.
