A Saudi company has signed an agreement to build a green hydrogen plant in Egypt.
The electric construction company based in Riad Alfanar has signed the Memorandum of Understanding with the Egyptian General Authority of the Suez Canal Economic Zone, the Sovereign Fund, the electricity transmission company and the Renewable Energy Authority and new. The note predicts that the entities will develop a green hydrogen plant in Ain Sokhna, south of Suez. The $ 3.5 billion project aims to produce 500,000 tons of green ammonia from 100,000 tons of green hydrogen annually, Alfanar said in a press release on Monday.
What does it mean: Hydrogen can be used as an energy source when separated from water. When hydrogen is separated using energy from renewable energy sources, it is referred to as green hydrogen. Green ammonia is another energy formed from hydrogen via renewable energy.
Green ammonia is more expensive to produce compared to traditional ammonia and the gas requires considerable energy to be produced. On the other hand, ammonia can be easier to store and transport with respect to hydrogen.
Because matter: Egypt is looking to increase its renewable energy capacities. To this end, the country is seeking investment from Israel and the Gulf states.
Saudi Arabia, in particular, is helping Egypt develop its renewable energy sector. In June, the two countries signed an agreement to develop green hydrogen. The same month, ACWA Power of Saudi Arabia agreed to develop a wind project in the country.
Egypt has relatively little oil compared to its allies in the Gulf. It does not experience chronic power outages like other parts of the region. However, the country of 100 million has great energy needs and has suffered from it power outages in recent years.
Learn more: There have been many other energy-related developments in Egypt in recent times. This month Cairo announced a plan to reduce electricity consumption with the aim of freeing natural gas for exports. A Russian company is also working on the construction of Egypt’s first nuclear power plant. Saudi Arabia also secured more funding this month for its electricity interconnection plan with Egypt.
