AMEA Power, headquartered in Dubai, signed a framework agreement with Egypt to develop a 1000 MW green hydrogen project for the production of green ammonia. The project will be located in Suez Province, Egypt, and will have the capacity to produce 800000 tons of green ammonia annually for domestic use and export.

AMEA Power cooperates with the Egyptian Sovereign Fund, the Egyptian Electricity Transmission Authority, the New and Renewable Energy Authority and the Suez Canal Economic Zone to develop the project. The world is entering a new era of clean energy deployment, and emerging solutions such as green hydrogen energy will provide huge opportunities for investment, job creation and for Egypt and other countries to become major hubs of clean energy, said President Hussain Al Nowais.

With the transition of economy and industry to a low-carbon world, hydrogen produced from renewable energy and natural gas is expected to become a key fuel. It comes in many forms, including blue, green, and gray. Blue and grey hydrogen are produced from natural gas, while green comes from electrolytic decomposition of water. Low carbon ammonia is made of nitrogen and clean hydrogen. It is the most promising carrier for large-scale hydrogen production and a potential clean fuel. It is suitable for a wide range of applications, including transportation, power generation and fertilizer production.

AMEA Power said that the hydrogen production plant will be developed in two 500MW phases to reduce risks and ensure that it benefits from the improvement of technical efficiency and the reduction of equipment prices. The company said that it was conducting high-level discussions with European, Chinese and Japanese companies to ensure long-term buyers of green ammonia. The Dubai based company is still negotiating with the Egyptian Hydrocarbon Company to provide some green hydrogen production to support the development of green industry in North African countries.

AMEA Power has completed the feasibility study of the project and said that it is expected to make a final investment decision in the next two to three years. The operation of the first phase of the project is expected to start in 2027. Egypt is one of the largest economies in Africa and has been seeking to position itself as a regional energy center. Hydrogen production is the key to its strategy.

In 2022, the country signed a US $3 billion agreement with a consortium led by EDF Renewables, a French electric power company, and Zero Waste, an Egyptian company, to develop a large green hydrogen project in Ain Suhna on the Red Sea, which will produce up to 350000 tons of green fuel for ships passing through the Suez Canal every year.

This great success marks an important milestone in Egypt's green strategy. It can only be achieved with the persistence of all government sponsors and the belief of partners in Egypt's potential as a green hydrogen center, said Ayman Soliman, CEO of Egypt's sovereign fund. Egypt has made great efforts to develop its green hydrogen energy program, and has made incredible progress in a few months.

By 2023, the value of the global hydrogen energy industry is expected to reach US $183 billion, higher than US $129 billion in 2017. Natixis, a French investment bank, estimates that hydrogen energy investment will exceed 300 billion dollars by 2030. Abu Dhabi clean energy company Masdar said in a report that Africa may occupy 10% of the global green hydrogen market by 2050, because the demand for clean fuels continues to grow under the efforts of decarbonization.Editor/Xing Wentao