Globeleq, an independent developer, owner and operator of electricity generation in Africa, has signed a memorandum of understanding to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone.
The MOU was signed with the General Authority for Suez Canal Economic Zone, New and Renewable Energy Authority, Sovereign Fund of Egypt for Investment and Development, and Egyptian Electricity Transmission Company.
As lead developer and investor, Globeleq will develop, finance, build, own and operate the green hydrogen project. It will be developed in three phases, totalling 3.6 gigawatts of electrolyzers and around 9GW of solar PV and wind power generation.
The first phase will involve a pilot project using a 100-megawatt electrolyzer. It will initially focus on green ammonia fertilizers, while considering other end-uses of green hydrogen in the medium and longer term, including green fuels. Globeleq intends to enter into long-term offtake agreements with leading and credit-worthy Egyptian and international companies, while supporting their decarbonization plans.
The green hydrogen is for exports and the local market. Globeleq says Egypt’s unique geographical location, at the crossroads of Africa, Europe and Asia, with about 13% of the global trade flowing through the Suez Canal, puts the country in a position to become a global green energy hub.
The company has been investing in Egypt since 2003 and currently owns the ARC for Renewable Energy’s 66MWp solar PV plant at the Benban Solar Park near Aswan. It aims to support the country’s ambitious renewables strategy by developing new solar PV, wind, battery energy storage, seawater desalination and green hydrogen projects in Egypt.
Globeleq is 70% owned by British International Investment and 30% by Norfund of Norway.
The Egyptian government has ambitious energy transition plans, and will host the 27th United Nations Climate Change conference, or COP27, in Sharm El Sheikh in November.