$4 Billion Green Hydrogen-Ammonia Plant In Egypt

• ACWA Power will build a green ammonia project in Egypt targeting 600,000 tonnes/year capacity 
• The wind and solar powered plant will be built for an investment of over $4 billion 
• It may be followed by a larger 2 million tonnes/year green hydrogen project under phase II 
• ACWA Power has also signed a PPA for what it says is South Africa's largest hybrid dispatchable renewable energy project 

Saudi Arabian energy company ACWA Power has announced plans to build a green ammonia plant with 600,000 tonnes/year capacity in Egypt, powered by wind and solar energy under a new framework agreement signed. 

While the 600,000 tonnes of green ammonia/year will be produced for over $4 billion under phase I, it intends to work on a larger green hydrogen project here with a capacity to produce up to 2 million tonnes/year under phase II. 

It will realize the project under an agreement signed with The Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA). These entities had earlier entered into a contract with India's ReNew Power for an $8 billion green fuels project (see Green Hydrogen & Green ammonia Project In Egypt). 

The framework agreement follows a memorandum of understanding (MoU) ACWA Power says it signed for the project in December 2022. 

"We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world," said ACWA Power's CEO Marco Arcelli. "Egypt is well-positioned to become one of the world's top producers of green hydrogen and we are elated to be a part of the country's energy transition." 

The Saudi Arabian company said its total renewable energy assets in operation, under construction and in advanced development in Egypt have now grown to 1.4 GW. This will be its maiden green hydrogen facility in the African nation. It follows the company's announcement of its plan to build the largest green hydrogen facility in Indonesia (see 'Largest' Green Hydrogen Facility In Indonesia).  

Recently, ACWA Power signed a power purchase agreement (PPA) for South Africa's 'largest' hybrid dispatchable renewable energy project. The 150 MW ACWA Power Project DAO will be equipped with the 'largest' solar PV installation in the country with 442 MW capacity and 1,200 MWh of battery storage, which will be one of the largest in the world, it added.