COP28: Egypt inks green energy deals, methanol, ammonia, 1GW solar with storage

Minister of International Cooperation Rania A. Al-Mashat oversaw the agreements, which will see the government collaborate with the Norwegian company SCATEC, the African Development Bank, and the British International Investmenton transformative projects

Staff Writer, Daily News Egypt

December 5, 2023

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Egypt’s green ambitions took a major leap forward with the signing of three key partnerships. Minister of International Cooperation Rania A. Al-Mashat oversaw the agreements, which will see the government collaborate with the Norwegian company SCATEC, the African Development Bank (AfDB), and the British International Investment (BII) on transformative projects.

Green Methanol for Ships: The first project targets the Suez Canal Economic Zone, where a facility will produce up to 200,000 tons of green methanol annually. This clean fuel will power ships, reducing emissions and contributing to Egypt’s maritime sustainability goals.

Damietta’s Green Ammonia: The second project focuses on green ammonia production in Damietta. This will not only enhance carbon capture but also accelerate Egypt’s transition to a green economy.

1GW Solar with BESS: A Regional First: The crown jewel is a 1GW solar energy project utilizing BESS (battery energy storage) technology. This first-of-its-kind project in Egypt and the largest in the region will be a testament to the nation’s commitment to renewable energy.

Partnerships for Progress: The signing ceremony was attended by dignitaries like Norway’s Prime Minister Jonas Gahr Støre and AfDB’s Vice President Kevin Kariuki. In her opening remarks, Minister Al-Mashat emphasized the importance of these partnerships in driving green transformation. She lauded SCATEC’s prior contributions, including the Benban Solar Project and the Suez Canal Economic Zone’s green hydrogen plant.

Building on Existing Success: “Our partnership with SCATEC is long-standing and strategic,” Minister Al-Mashat declared. “These projects solidify our commitment to renewables and showcase the power of collaboration between government, private sector, and development partners.”

Global Challenges, Local Solutions: The Minister underscored the urgency of transitioning to sustainable, low-carbon energy systems. She cited alarming statistics from the UN Environment Programme: fossil fuels still dominate energy production and contribute heavily to greenhouse gas emissions.

Renewable Reliance on the Rise: While acknowledging the significant increase in renewable energy usage (8% in 2022), Minister Al-Mashat stressed the need for greater action. She echoed the International Renewable Energy Agency’s call to triple renewable energy capacity by 2030.

Energy Storage: Key to a Stable Future: Recognizing the growing global interest in energy storage, Minister Al-Mashat highlighted its crucial role in balancing renewable energy fluctuations and ensuring consistent electricity supply. She emphasized Egypt’s alignment with this trend, citing the NWFE program’s goal of achieving 42% renewable energy by 2030.

Ambitious Solar with Storage: The 1GW solar-BESS project embodies Egypt’s ambition. It marks the first BESS deployment in Egypt and sets a regional benchmark. This collaboration between the government, SCATEC, AfDB, and BII demonstrates the commitment to a sustainable future.

Green Investments and Financing: Minister Al-Mashat concluded by highlighting the NWFE program’s efforts in mobilizing green investments and facilitating financing for Egypt’s renewable energy transition. These efforts, along with the focus on green hydrogen, paint a promising picture for Egypt’s green future.