Norway’s Scatec and Germany’s PtX signed a Euro 30 million (EGP 1.6 billion) grant agreement to support Egypt’s green hydrogen project, the Ministry of Planning, Economic Development, and International Cooperation announced on Tuesday.
The agreement signing took place with the attendance of Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources; Svenja Schulze, Germany’s Federal Minister for Economic Cooperation and Development; and Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation.
This grant represents a crucial advancement in Egypt’s overarching strategy to establish itself as a regional leader in renewable energy in line with global initiatives aimed at transitioning to cleaner fuel sources.
Aiming to strengthen local value creation, the project seeks to harness the ample wind and solar energy resources in the region. By doing this, the project promotes the green transition in the Suez Canal Economic Zone and guides the country toward achieving climate neutrality in resource- and energy-intensive sectors.
The project is expected to produce 70,000 tons of green ammonia annually, which is equivalent to 140,000 tons of carbon dioxide emissions, totaling 3 million tons over its operational lifetime. Additionally, the project is expected to generate 1,330 job opportunities during its construction, operation, and maintenance phases.
Funded by a Euro 270 million (EGP 14.4 billion) grant from the PTX Green Hydrogen Mechanism established by the German Federal Ministry for Economic Cooperation and Development, the initiative aims to support industrial projects at various stages of the green hydrogen value chain in Egypt and six other partner countries.
The initiative aims to establish a foundation for the sustainable transformation of the entire industry in Egypt.
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