Norwegian renewable energy firm SCATEC has expanded its investment in Egypt, committing US$1.1 billion to green hydrogen and renewable energy projects. This significant investment was announced during the ongoing UN Climate Change Conference, COP28, in Dubai.
SCATEC, a key player in Egypt’s green hydrogen sector, is already involved in the country’s pioneering green hydrogen project in Ain Sokhna. Despite Egypt’s extensive investment in green hydrogen, this is currently the only project in the execution phase. The project, a collaboration between the Sovereign Wealth Fund, SCATEC, and Fertiglobe, focuses on utilizing solar and wind energy to produce green ammonia for export.
The newly signed agreement with the Suez Canal Economic Zone is set to establish a $1.1 billion green fuelling station for ships in East Port Said, underscoring Egypt’s commitment to becoming a major player in the green hydrogen industry.
This development comes amid a surge of interest in green hydrogen in Egypt, as the country, along with others in the region, seeks to capitalize on the expected rapid growth of the industry. Green hydrogen, produced from renewable energy sources, offers an eco-friendly alternative to natural gas and is being explored for use in heavy industries, shipping, and green fertilizer production.
“East Port Said is the destination of the green bunkering project due to its location northern Suez Canal, and its integration with the ports of East Port Said and West Port Said, and therefore it is located near the ship’s waiting areas,” said Suez Canal Economic Zone chairman Waleid Gala El-Dien.
Progress in the industry has been slower than anticipated, with the national green hydrogen strategy still pending release, over a year past its initial launch date at COP27. Prime Minister Mostafa Madbuly recently announced the completion and approval of this strategy by the National Council for Green Hydrogen, with plans to present it to the Egyptian Supreme Council of Energy.
The strategy aims to position Egypt to capture 5-8% of the global green hydrogen market. It includes incentives to attract investors and allocate lands for project development. Industry consultant Osama Fawzy believes that these incentives are crucial for encouraging global companies to commit to action and enabling Egypt to compete with other countries in the region for funding in the green hydrogen sector.
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