The government signed a memorandum of understanding (MoU) with the Green Fuel Alliance, France’s EDF Renewables, and Egypt’s Zero Waste on Wednesday with an offer to establish a project to produce green ammonia to supply ships with green fuel.
Sources told Daily News Egypt (DNE) that the MoU includes the implementation of the project in phases, the first of which will be executed with investments amounting to $1bn and a project capacity of 350 tonnes per day.
The sources added that the alliance has concluded preliminary agreements with three international banking institutions to finance the project, which will be implemented in Egypt. An implementation agreement for the MoU will be signed this year, before the upcoming Conference of Parties on Climate Change (COP 27) that will be held in Sharm El-Sheikh this November.
They also indicated that the alliance is interested in cooperating with the Sovereign Fund of Egypt to implement the green ammonia production project, which is similar to a project being implemented by the Scatec Alliance.
Furthermore, the government plans to expand renewable energy projects and produce green hydrogen and ammonia as part of its plan to reduce emissions and preserve the environment.
Earlier, the government signed an agreement to establish an electrolyser to produce green hydrogen with a capacity of 100 mw with the alliance of SCATEC, Orascom, and Fertiglobe — the latter of which is a joint company between Orascom Construction and Industry and the Abu Dhabi National Oil Company — with the participation of the Sovereign Fund of Egypt.
The green hydrogen production project that will be implemented through the Orascom-Scatec alliance is the first practical application to be presented at the COP 27.
The first phase of the project to produce green ammonia for industrial uses as a clean marine fuel will begin operation in October.
Minister of Electricity and Renewable Energy Mohamed Shaker said in a previous statement to DNE that a cooperation agreement was signed between the Electricity Holding Company, the Belgian DEME Alliance, the Gas Holding Company, and Abu Qir Company for the Establishment and Management of Ports to cooperate in establishing a green hydrogen production and storage project.
According to this agreement, the Belgian alliance took over and is conducting feasibility studies.