In a groundbreaking move towards sustainable energy development, the Egyptian government has signed seven memorandums of understanding (MoUs) with international developers, paving the way for potential investments exceeding $40 billion in green hydrogen and renewable energy within the Suez Canal Economic Zone.
The agreements, signed in the presence of Prime Minister Mostafa Madbouly and key industry representatives, outline a comprehensive plan for the influx of investments over a 10-year period. The initial phase is expected to witness an investment of approximately $12 billion for a pilot program, followed by an additional $29 billion earmarked for the first phase of implementation.
Among the notable attendees at the signing ceremony was Ayman Suleiman, CEO of the Sovereign Fund of Egypt, who expressed optimism about the increasing interest in green hydrogen projects. Suleiman remarked, “Today’s signature reflects the growing enthusiasm of companies to join the Egyptian Green Hydrogen Program, signifying the state’s commendable commitment to a fully funded and landmark program.”
Representatives from the private sector, including CEOs Kofi Osu Bembah, Jawo Kunha, and Ihab Damian, were also present at the signing ceremony, signifying a collaborative effort between the government and industry leaders.
Planning Minister Hala El-Said highlighted Egypt’s ambition to position itself as a regional hub for green energy, emphasizing the sovereign fund’s success in launching Africa’s first integrated green ammonia production plant. The newly-signed agreements mark the initiation of crucial investment partnerships aligned with the objectives outlined in the National Green Hydrogen Strategy, ratified in November.
The strategy, a pivotal step towards Egypt contributing 5-8 percent to the global hydrogen market, targets a reduction of 40 million tonnes of carbon emissions annually by 2040. In a momentous development last November, Fertiglobe, based in Egypt, shipped the first batch of renewable ammonia, marking a significant breakthrough in the global supply of sustainable ammonia.
November 2023 also witnessed the Suez Canal Economic Zone sealing a $15.6 billion agreement with prominent Chinese companies, further fortifying Egypt’s position in renewable fuel manufacturing initiatives. These agreements are anticipated to generate around 9,000 job opportunities and oversee the establishment of 11 transformative projects, propelling Egypt towards a greener and more sustainable energy future.