Suez region in $32 billion green hydrogen boost

A group of financiers and developers have this week pledged to invest $32 billion towards green hydrogen and ammonia projects in the Suez Canal Economic Zone (SCZONE).

Seven separate memoranda of understanding (MoUs) were signed on 30 August with Egyptian authorities by companies including UK private equity fund Actis and Indian solar developer ACME.

It is hoped that the MoUs will pave the way to develop seven large-scale projects that, if realised, would deliver three million tonnes of green ammonia per year and 2.4 million tonnes of green hydrogen.

Five of the seven projects will be developed in the port of Sokhna, on the Gulf of Suez.

“The integration between the industrial zones and the affiliated ports [gives] SCZONE the competitive advantage that [makes] it one of the most important global destinations and a regional hub for the green fuel industries,” said Waleid Gamal El-Dein, chairman of SCZONE.

The seven companies in full:

  • ACME plans a $13 billion project to produce 2.2 million tonnes of green hydrogen annually
  • UK-based Africa-focused power plant specialist Globaleq has pledged $11 billion to a three-phrase project that will ultimately comprise a 3.6GW electrolyser with 9GW of solar and wind, delivering 2 million tonnes a year of green ammonia. 
  • Saudi Arabian developers Alfanor plans to invest $4 billion to deliver 500,000 tonnes per year of green ammonia
  • United Arab Emirates’ (UAE) fund manager Alcazar pledged $2 billion towards a scheme that will deliver 230,000 tonnes per year of green ammonia
  • UAE’s K&K plans to deliver 230,000 tonnes per year of green hydrogen
  • Egypt’s Mediterranean Energy Partners intends to invest $230 million towards a project to produce 120,000 tonnes per year of green ammonia
  • UK private equity fund Actis pledged $1.5 billion for a green hydrogen and ammonia industrial complex in Sokhna that will produce 200,000 tonnes per year of green NH3

The MoUs were signed with Norway’s Scatec; UAE’s Masdar; Hassan Allam Utilities and AMEA Power;  France’s Total and EDF; Egypt’s Enara Capital; Maersk, and Egypt’s Zero-Waste.