Posted inNews, Features, Hydrogen, Renewable Energy

ACWA Power to complete first phase of $4BN green hydrogen project in Egypt by 2028

Green hydrogen project will play a key role in the country's energy transition and global efforts toward reducing carbon emissions

ACWA Power Hydrogen Egypt
Once fully operational, the plant will produce 600,000 tonnes of green ammonia annually

ACWA Power, one of the world’s leading developers in renewable energy, is set to complete the first phase of its landmark green hydrogen project in the Suez Canal Economic Zone (SCZone) by late 2028.

 According to Hassan Amin, CEO of ACWA Power Egypt, the project will play a key role in the country’s energy transition and global efforts toward reducing carbon emissions.

The ambitious project, initiated under a 2023 agreement, involves an investment of over $4 billion.

Once fully operational, the plant will produce 600,000 tonnes of green ammonia annually, with plans to expand capacity to 2 million tons in future phases.

The ammonia produced will serve as a vital component in the global green hydrogen supply chain, helping to meet growing demand for sustainable energy solutions.

Renewable energy to power the plant

The green hydrogen plant will rely on renewable energy sources from the East Nile feeding stations in Minya, Upper Egypt, ensuring the project is in line with Egypt’s sustainability goals.

Amin noted that the renewable power supply will be a key aspect of the plant’s operations, allowing it to avoid the significant carbon emissions typically associated with traditional hydrogen production methods.

Green hydrogen, unlike its fossil fuel-derived counterpart, is produced by splitting water into hydrogen and oxygen using electricity generated from renewable sources, such as wind or solar power.

This method drastically reduces carbon emissions and has the potential to transform energy sectors worldwide.

Expanding global partnerships

In addition to its operations in Egypt, ACWA Power has a global presence in the green hydrogen sector. The company’s CEO, Marco Arcelli, pointed out ACWA’s role as a first mover in green hydrogen, noting, “Egypt is well-positioned to become one of the world’s top producers of green hydrogen, and we are proud to be part of the country’s energy transition.”

ACWA Power has proactively entered into key international partnerships to bolster its green hydrogen initiatives.

In July 2024, the company signed an agreement with Japan’s Itochu to co-develop and off-take green ammonia from the Egyptian plant.

The agreement follows a framework signed in 2023 between ACWA Power, the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone, the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) to build the first phase of the hydrogen facility.

Scaling up global projects

Beyond Egypt, ACWA Power is developing several large-scale hydrogen projects around the globe. The company is a key player in the Neom Green Hydrogen Project in Saudi Arabia, the world’s largest hydrogen plant designed for export.

Partnering with Air Products and Neom, ACWA Power secured $8.5 billion in financing and a 30-year offtake agreement for the project. Also, ACWA is advancing its efforts in Uzbekistan, where construction on a new hydrogen plant began in November 2023.

In Uzbekistan, the first phase of the project includes a 3,000-tonne green ammonia pilot, which will eventually be expanded with 2.4 gigawatts of wind energy to produce 500,000 tonnes of green ammonia annually.

These initiatives reflect ACWA Power’s commitment to accelerating the global shift to cleaner energy solutions.

Egypt’s strategic push for green hydrogen

Egypt, with its abundant solar and wind resources, is uniquely positioned to become a global leader in green hydrogen production.

The country’s 2035 Energy Strategy places a significant focus on developing its hydrogen industry, with green hydrogen and its derivatives—such as ammonia and methanol—at the core. These products are expected to be in high demand as the global shipping industry transitions to more sustainable fuels.

The Egyptian government has set ambitious renewable energy targets. At the UN Climate Conference COP27, Egypt announced its goal of sourcing 42% of its energy from renewables by 2030, a substantial acceleration from the previous target of 2035. Currently, around 20% of Egypt’s energy mix comes from renewable sources.

In line with this national strategy, ACWA Power is playing a key role in supporting Egypt’s green energy ambitions. Including the latest hydrogen project, the company now operates five renewable energy projects in Egypt, with a total power generation capacity of 1.4 gigawatts.

A growing global presence

Backed by Saudi Arabia’s Public Investment Fund, ACWA Power has operations across 12 countries, including the Middle East, Africa, Central Asia, and Southeast Asia.

The company’s portfolio includes 77 projects in various stages of development or construction, with a total investment value of $82.8 billion. In total, the projects have the capacity to generate nearly 54 gigawatts of power and 7.6 million cubic meters of desalinated water per day.

As the world increasingly shifts toward cleaner energy, ACWA Power’s green hydrogen projects in Egypt and around the world are set to become critical components of the global energy transition.

Baset Asaba

Baset Asaba is an accomplished media and communications expert with extensive experience in creating impactful content across diverse platforms throughout the Middle East and Africa. With a background...