China Energy's $5.1bn Egypt green H2 plant

China Energy to Build $5.1 Billion Green Hydrogen Plant in Egypt with Support from Prime Minister Mostafa Madbouly

China Energy has announced its plan to construct a $5.1 billion green hydrogen plant in Egypt, during a meeting with Egypt's prime minister Mostafa Madbouly. The project is set to be developed in two stages, including a wind farm, a solar park, a water electrolysis facility, and an ammonia synthesis facility. Upon completion, it will be capable of producing 140,000 tonnes of green hydrogen annually, and aim to export ammonia to European markets.

Madbouly expressed his country's readiness to offer incentives required for the implementation of the Chinese company's investment in hydrogen production infrastructure and desalination. This announcement follows a series of memorandums of understanding (MoUs) signed at the end of 2022 to study the growth of green hydrogen production in the Suez Canal Economic Zone, with the participation of both domestic and foreign businesses.

The chairman of China Energy, Song Hailiang, announced that the company has already completed 10 energy projects in Egypt, and is currently involved in an interconnector between Egypt and Saudi Arabia, a 700 MW solar project in Kom Ombo, and is considering investments in power line replacement and water desalination facilities.

The Egyptian government is committed to supporting and expediting these projects, and is prepared to offer significant incentives through various ministries, according to Madbouly. The implementation of this project would represent a significant step towards reducing carbon emissions in the Middle East and Africa, and moving towards cleaner, renewable energy sources to reduce reliance on natural gas and other fossil fuels.

Overall, this green hydrogen plant project in Egypt represents a significant investment and development opportunity, with potential to positively impact both the energy industry and the broader economy in the region.