Two major UK companies sign agreements with Egypt for green hydrogen development
Ashraf AboArafe
29 August 2022 – CAIRO, Two leading British investors in renewable energy, Globeleq and Actis, have each signed a Memorandum of Understanding with the Egyptian Government for green hydrogen development.
Globeleq, the leading independent power company in Africa, has signed an agreement with the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC), to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone.
Globeleq will develop, finance, build and operate the green hydrogen project. It will be developed in 3 phases, totalling 3.6 GW of electrolysers and around 9 GW of solar and wind power generation. The project will initially focus on green ammonia fertilisers, but other potential end-uses of green hydrogen will be considered in the medium and longer term, including green fuels. Globeleq intends to enter into long-term agreements with leading and creditworthy Egyptian and international companies, while supporting their decarbonisation plans.
Capitalising on Egypt’s best-in-class wind and solar photovolatic resource, well-developed infrastructure, as well as the Egyptian Government’s investment-friendly regulatory framework, Globeleq aims to competitively produce hydrogen for export and for the local market. Egypt’s unique geographical location, at the crossroads of Africa, Europe, and Asia, with about 13% of the global trade flowing through the Suez Canal, puts the country in a position to become a global green energy hub.
This is also one of the reasons why Actis, a leading global investor in sustainable infrastructure, has also signed a Memorandum of Understanding (MoU) with the Egyptian Government to establish an industrial complex for the production of green fuels from hydrogen and green ammonia, with a total investment cost exceeding one billion dollars.
Egypt has a comparative advantage due to its renewable resources and proximity to European and Asian markets. This opportunity is an attractive proposition for Actis as it develops its hydrogen strategy and evolves the next generation of investment platforms.
The British Ambassador to Egypt, Gareth Bayley, said: “Globeleq and Actis are two leading British investors, who have been investing in Egypt for nearly 20 years. We are delighted with the signing of these MoUs. Egypt is considered one of the largest hydrogen markets in the region and these projects will support both countries’ leadership and ambitions towards renewable energy and combating climate change. We look forward to continue working with Egypt and strengthening our green partnership.”
Mike Scholey, CEO of Globeleq, said: “Bold and rapid collective action is required to put the world on a sustainable pathway. Egypt is a key country for Globeleq, and we are excited to support the Government of Egypt’s ambitious green agenda and contribute to the fight against climate change.”
Dr. Sherif ElKholy, Partner and Head of Middle East and Africa for Infrastructure at Actis, said: “[This] signing is a continuation of our commitment to Egypt where we have a 20 year track-record of investing over US$1 billion in some of the country’s most strategically important businesses and projects to become one of the leading foreign direct investors in the country. The Egyptian government has ambitious Energy Transition plans, in addition to hosting COP27 this year, and active steps are being taken to make Egypt a major hub for green hydrogen. We look forward to deepening our partnership with the Egyptian government and contributing to their 2030 renewable energy strategy through this project and others to come.”
Ayman Soliman, CEO of the Sovereign Fund of Egypt, commented: “The partnerships we are witnessing are a translation to the state’s integrated strategy to diversify energy sources and localise green hydrogen production with all its components covering upstream and downstream stages, with the aim of transforming Egypt into a regional green energy hub. Our objective is to maximize the use of Egypt’s renewable energy resources in partnership with global specialised developers, whereby the goals and strategy of The Sovereign Fund of Egypt are realised.”
