The Egyptian government recently inked a significant deal with a subsidiary of China Energy Engineering Group, commonly known as Energy China, for the construction of a green hydrogen and ammonia plant within the Suez Canal Economic Zone. The project, valued at $6.75 billion, marks Energy China's inaugural hydrogen venture overseas. Initial estimates, released in March, pegged the facility's cost at $5.1 billion, but the figure increased due to a rise in production capacity. Originally planned for 140,000 tonnes of hydrogen, the plant will now produce 210,000 tonnes, which translates to around 1.2 million tonnes of ammonia.

Energy China's memorandum of understanding with the Egyptian government, signed in November of the preceding year, indicated their intent to export substantial volumes of green ammonia (NH3) to European markets. Furthermore, Egypt is on the verge of finalising a framework agreement with Belgian developer DEME for a green hydrogen plant at the Jarjoub port development. The first phase of this project, worth $3 billion, will propel Egypt closer to Europe upon its completion, although an official deadline for this construction remains undisclosed.

Egypt's ambitious green hydrogen initiatives have amassed a substantial pipeline of projects, totalling approximately $83 billion. Most of these ventures, primarily facilitated by international developers, are still in their early stages, with Memorandums of Understanding and framework agreements serving as precursors to actual construction. Notably, Prime Minister Mostafa Madbouly emphasised the government's commitment to promoting green hydrogen, revealing plans to enhance incentives and allocate resources for these projects. A draft law proposing tax credits of up to 55% for such initiatives is anticipated to be issued later this year.

Source: hydrogeninsight