Globeleq says it aims to capitalise on Egypt’s best-in-class wind and solar resources
Africa-focused independent energy company Globeleq has signalled its intention to develop a large-scale green hydrogen facility in Egypt’s Suez Canal Economic Zone.
The company, which is 70% owned by British International Investment and 30% by Norfund, says it aims to capitalise on Egypt’s best-in-class wind and solar resources to competitively produce hydrogen and derivate products for export and the local market.
Egypt, which will host the COP27 climate talks in November, has a goal of transforming itself into a regional green energy hub by maximizing the use of renewable-energy resources in partnership with global specialised developers.
Globeleq has signed a memorandum of understanding for the joint development of the project with the New and Renewable Energy Authority, the General Authority for Suez Canal Economic Zone, the Sovereign Fund of Egypt for Investment and Development and the Egyptian Electricity Transmission Company.
The company will develop, finance, build, own and operate the green hydrogen project, which will be developed in three phases and involve 3.6 GW of electrolyser capacity, as well as about 9 GW of solar photovoltaic and wind power generation.
The first phase will involve a pilot project using a 100 MW electrolyser, and will initially focus on green ammonia fertilisers, while considering other end-uses of green hydrogen in the medium and longer term, including green fuels.
Globeleq says it intends entering into long-term offtake agreements with leading and creditworthy Egyptian and international companies, while supporting their decarbonisation plans.