The announcement was made during a meeting of the Egyptian cabinet, on 9 March, attended by China Energy chairman Song Hailiang.
1. China Energy Engineering Corporation
The announcement came from Egyptian Prime Minister, Mostafa Madbouly, saying that China Energy Engineering Corporation will break ground in May on one of the country’s first green hydrogen projects. The move, which follows the signing of a Memorandum of Understanding in November, will be financed by an investment value of $5.1bn. Madbouly welcomed the Chinese company’s investment in hydrogen and desalination infrastructure, and expressed his country’s readiness to provide the necessary incentives to implement them.
China Energy Engineering Corporation plans to carry out a mega project to produce green hydrogen in Egypt at total investments valued at between dlrs 5 billion to dlrs 8 billion. pic.twitter.com/QJWokYh7PB— State Info. Service (@SISEGY) March 11, 2023
2. Solar park and wind farm
The project will be developed in two phases, according to China Energy. It will consist of a solar park and wind farm, along with a facility for electrolysing water and synthesising ammonia. As soon as both phases are complete, the facility will be able to produce 140,000 tonnes of green hydrogen a year. A key expected outcome is that the plant will allow Egypt to export ammonia to European markets, a move intended to relieve the country’s chronic shortage of foreign exchange.
3. Regional green hydrogen hub
Egypt aims to implement the state’s strategy to boost the volume of renewable energy, reduce the use of fossil fuel, and turn the country into a regional hub for the production of green hydrogen, the Minister of Electricity Mohamed Shaker said in his November meeting with the delegation of the Chinese company.
Since 2009, China Energy, a state-owned enterprise based in Beijing, has carried out around 10 energy projects in Egypt.