Masdar, a renewable energy company, and Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding Group, will cooperate on the development of green hydrogen production plants in the Suez Canal Economic Zone (SCZONE) and on the Mediterranean coast.
In the first phase of the project, Hassan Allam Utilities and Masdar aim to establish a green hydrogen manufacturing facility, which would be operational by 2026, producing 100,000 tonnes of e-methanol annually for bunkering in the Suez Canal. The electrolyzer facilities in the SCZONE and on the Mediterranean could be extended to up to 4 GW by 2030 to produce 2.3 million tonnes of green ammonia for export as well as supply green hydrogen for local industries.
Masdar and Hassan Allam Utilities see Egypt as a hub for green hydrogen production, targeting the bunkering market, export to Europe, and boosting local industry. Driven by green hydrogen’s export potential, its ability to attract large-scale foreign direct investment, and opportunities to contribute to the government’s efforts to optimize generation costs and increase the share of renewables in the country’s energy mix to 42% by 2030, the Ministry of Electricity is currently revising its 2030 renewable energy strategy to include green hydrogen, and is developing a green hydrogen strategy, which is expected to be issued by October 2022.