Fortescue Future Industries (FFI) intends to begin production on the green hydrogen project in Egypt in 2027, with all stages completed by 2030.
FFI President for the Middle East and North Africa, Moataz Kandil, revealed that the company is in talks with the General Authority for the Suez Canal Economic Zone (SCZone) about allocating exclusive lands for a green hydrogen project to be launched in Egypt.
Kandil also stated in an interview with Daily News Egypt that the project will include the construction of renewable energy stations with a capacity of 7,600 megawatts that will produce approximately 330 kilotons of green hydrogen annually once all stages of the project are completed.
He added that the company will work with the Egyptian government on the green hydrogen project, which emphasizes the value and impact of the project as a source of direct foreign investment; however, the idea of bringing in a new partner is not completely unlikely. He also explained that the Egyptian government’s share has not been determined yet but will not exceed 25%.
The company signed an agreement with the Egyptian government, represented by the New and Renewable Energy Authority (NREA), the SCZone, the green hydrogen, and the Sovereign Fund of Egypt for Investment and Development, to study and develop a huge project for the production of green hydrogen and renewable energy in Egypt.
He pointed out that the company is updating studies based on the allocated lands, and upon their completion, the investment value of the project—expected to reach several billion dollars—will be estimated. He added that due to the magnitude of the project, it will be funded by investment capital and loans and bonds from various institutions. He also pointed out that discussions would begin with the completion of studies.
Kandil added that the company plans to export production to the European market, especially Germany, where Fortescue already has an agreement to supply an estimated quantity of five million tonnes annually by 2030, which enhances Egypt’s position as a hub for clean energy in the region.
Kandil believes that Egypt’s geographical location, characterized by its proximity to the European market, gives it a strategic advantage, making it possible for Egypt to be among the largest exporters of energy. Moreover, the company is focused on clean and renewable energy projects in order to meet the needs of the local market, followed by export opportunities.
The company is studying opportunities to localize clean energy projects as well as mining opportunities, given Fortescue’s experience in the field of exporting iron ore globally.
He stressed that the Middle East is one of the most important regions that the company is focused on and that it has a vision for the region, driven by its geostrategic advantages that can be leveraged to export green hydrogen, whether to the markets of Europe or Asia.
He pointed out that the company already has a project in Jordan that was signed some time ago and is being studied at the present time, and plans to penetrate other markets such as the Sultanate of Oman, the United Arab Emirates, Saudi Arabia, and Morocco in the coming period.
He stressed that Egypt is an attractive market for investment, as the Egyptian government is working hard to attract foreign investments to achieve sustainable economic development, despite the challenges facing emerging markets due to high interest rates worldwide and currency fluctuations.
Kandil believes that the biggest challenge is the high cost of producing green hydrogen. Although the cost of producing renewable energy used in the production of green hydrogen has declined over the past 10 years, the cost of producing one kilogram of green hydrogen currently ranges from $3.5 to $5.
He predicted that the cost would fall to $1.5-2 dollars by 2026-2027 as a result of the widespread use of green hydrogen and the enormous demand for it as a fuel and a clean source of energy worldwide.
FFI is a completely owned subsidiary of the Fortescue Group. It is listed on foreign exchanges and has a market capitalization of $34 billion.
