The photo is sourced from energycapitalpower.com
The agreement was signed with the participation of the Egyptian New and Renewable Energy Authority, the General Directorate of the Suez Canal Economic Zone, the Egyptian Sovereign Fund and the Egyptian Electricity Transmission Company. The project’s first phase involves construction of 100 MW pilot electrolysis facilities, from which hydrogen will be used for green ammonia production. The advantageous geographic location of the Suez Canal, which accounts for 13% of world trade flows and may become a major clean energy hub in the coming years will promote further development of the project.
The Globeleq project is not the first green hydrogen initiative announced in the Suez Canal Economic Zone. Earlier, Masdar company owned by Mubadala state investment fund, the United Arab Emirates (UAE), signed two memorandums with the Egyptian government on construction of 4 GW electrolysis plants. The project will focus on hydrogen supply to the European market, which in the coming years is supposed to become one of the locomotives for the increasing demand for H2. According to S&P Global Platts, hydrogen consumption in the EU may increase from 10 million tons to 21 million tons by 2030, also due to demand growth in industry (by 5.2 million tons) and transport (by 5.8 million tons).
One of the consequences of the growing interest in green hydrogen in Egypt will be a boom in the construction of wind and solar generators. According to the International Renewable Energy Agency (IRENA), the total capacity of the wind and water power plants in Egypt amounted to 3.3 GW in 2021. The Globeleq project will raise this figure to more than 12 GW.