Egypt inks €7B green hydrogen deal with EDF Renewables, Zero Waste

Updated 7/1/2024 5:25:00 AM

Arab Finance: The New and Renewable Energy Authority (NREA) and the Red Sea Port Authority has inked an agreement with a consortium of France’s EDF Renewables and the Egyptian Emirati Zero Waste to produce green hydrogen and its derivative and green ammonia in the Ras Shokeir area, as per a statement on June 29^th.

The consortium will invest a total of €7 billion in the three phases of the project, including €2 billion in the first phase.

The project covers 420 square kilometers for solar and wind energy generation in the Ras Shokeir area, with a 1.2-million-square-meter factory site, a 7-kilometer electricity transmission path, and a 400-meter shipping dock.

Unlike other projects, this one does not require the Egyptian government to provide infrastructure or financial commitments, Minister of Transport Kamel El Wazir said.

The project will be funded entirely by the private sector, representing a rare long-term investment expected to take around 50 years to recoup expenses.

The Ministry of Transport will coordinate with relevant authorities to complete legal procedures and approvals.

The project's economic benefits include service fees, licensing fees, land usage fees, export fees, and various taxes, all payable in dollars.

Additionally, the project will create numerous job opportunities, with the first phase expected to produce over 1 million tons of green ammonia annually.

This came during the Egypt-EU Investment Conference attended by President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen, among other officials and ministers.