Globeleq has expressed its interest in producing green hydrogen in the Suez Canal Economic Zone.
The company signed a memorandum of understanding (MoU) with the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC).
The project would take place in three phases. Ultimately, it would involve 3.6 GW of electrolysers and around 9 GW of solar photovoltaic (PV) and wind generation.
The first pilot phase would involve a 100 MW electrolyser. This would focus on the production of green ammonia fertilisers.
Globeleq would act as lead developer and investor. It would develop, finance, build, own and operate the project.
SCZONE chairman Waleid Gamal Eldien said the Globeleq deal continued Egypt’s efforts to transform its economy.
“The Egyptian government has ambitious energy transition plans, in addition to hosting COP27, and active steps are being taken to make SCZONE a major hub for green hydrogen,” Eldien said.
“We are pleased to partner with Globeleq, one of the major renewable energy companies in the UK and globally, and this partnership reflects the interest of the global entities specialised in investing in such projects as they choose SCZONE as a destination for investment in green fuel projects, to serve the African and international markets.”
Globeleq would aim to sign long-term offtake agreements for the project’s production. This would go to the local market and for exports. The company already owns a 66 MWp solar PV plant near Aswan.
The ambassadors’ reception
British International Investment owns a 70% stake in Globeleq, while Norfund owns 30%.
British Ambassador to Egypt Gareth Bayley said the company had been “investing in Egypt for nearly 20 years and we are delighted with the signing of this MoU, which underscores once again the strong relationship between the UK and Egypt”.
Norwegian Ambassador to Egypt Hilde Klemetsdal said the plan chimed with Norway’s green hydrogen investments in Egypt.
“This is an example of just the kind of industry solutions that are required for translating the green transition into action,” Klemetsdal said. We value our strong co-operation with the Government of Egypt towards the green shift and the fight against climate change.”
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