Africa-focussed independent power company Globeleq announced on Monday that has signed a Framework Agreement with Egyptian state entities to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone (SCZONE).
The agreement was signed with the General Authority for Suez Canal Economic Zone (SCZONE), The Sovereign Fund of Egypt (TSFE), the New and Renewable Energy Authority (NREA), and the Egyptian Electricity Transmission Company (EETC), the UK-headquartered company said in a press statement.
The Memorandum of Understanding was signed in August 2022.
Globeleq, as lead developer and investor, will develop, finance, build, own and operate the green hydrogen project in three phases over 12 years, the statement said.
It said the project will have electrolsyers totalling 3.6 gigawatts (GW) powered by up to 9 GW of solar photovoltiac and wind energy.
Phase 1, which is expected to start operations by 2026-27, will be a pilot project, which will produce 100,000 tonnes per annum of green ammonia from hydrogen for export to Europe and Asia for use in the fertiliser industry.
Other potential end-uses of green hydrogen, including green fuels, will be considered in the medium and longer term, once they become commercially feasible, the statement said.
Globeleq has assets generating more than 1.5 GW in 14 locations across 6 countries in Africa, with a further 722 megawatts (MW) in construction and more than 2 GW of power projects in development.
In Egypt, the company currently owns the 66MWp ARC for Renewable Energy solar PV plant located at the Benban Solar Park near Aswan.
Globeleq is 70 percent owned by British International Investment and 30 percent by Norfund, which are the UK’s and Norway’s development finance institutions respectively.
(Writing by Sowmya Sundar; Editing by Anoop Menon)