The General Authority of Suez Canal Economic Zone (SCZone) expects to sign around $25 billion worth of green energy deals at the UN climate change summit COP27, which Egypt will be hosting this November.
Of the 16 memoranda of understanding signed between the SCZone and international companies since March, about five could result in final agreements at the conference, an SCZone spokeswoman told The National on Monday.
Last week, the SCZone signed agreements worth at least $31 billion with Saudi Arabia’s Alfanar Co., India’s ACME Group, British firm Actis, UAE firm K&K, Mediterranean Energy Partners (MEP), UAE firm Alcazar Energy, and Globeleq. The agreements aim to set up green hydrogen and ammonia production facilities in Egypt. The country previously signed seven initial agreements worth more than $14 billion.
“SCZone has a vision based on making it a regional and global hub for the production of green fuel, as it is scheduled to announce several projects and final contracts coinciding with Egypt’s hosting of Cop27,” said chairman Waleid Gamal El-Dein, following a meeting with Prime Minister Moustafa Madbouly on Saturday.
Egypt is aiming to boost its renewable energy sources to 42 percent by 2035 and has been ramping up its green hydrogen ambitions in recent months before Cop27.
Hydrogen is expected to account for 12 percent of global energy use and 10 percent of carbon dioxide emissions reductions by 2050, driven by climate change urgency and countries’ commitments to net zero, according to the International Renewable Energy Agency (IREA).
The colourless, odourless gas comes in many forms, including blue, green and grey. Blue and grey hydrogen are derived from natural gas, while green hydrogen is made using renewable sources.
The Middle East region has the highest number of low carbon-based hydrogen initiatives for export purposes and is expected to be the world’s largest supplier of green hydrogen in the coming years, a research by the Abu Dhabi-based Clean Energy Business Council read.
In the SCZone’s 460-kilometre area, 15 of the planned projects will be developed in the Ain Sokhna economic zone on the western side of the Gulf of Suez and one in East Port Said, which is close to the north exit of the Suez Canal.
“The integration between the industrial zones and the affiliated ports gave SCZone the competitive advantage that made it one of the most important global destinations and a regional hub for the green fuel industries,” Gamal El-Dein said.
