Germany’s PtX Development Fund has granted Scatec €30 million to support the green hydrogen plant in Egypt, which the Norwegian renewables giant is establishing in collaboration with Fertiglobe, Orascom Construction, the Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company, according to a statement released on October 9.
€30M grant
The €30 million grant is part of a wider €270 million project to support green hydrogen production efforts in Egypt and six other countries.
The initiative is set to accelerate green transformation in the Suez Canal Economic Zone, promoting climate neutrality in energy- and resource-intensive industries. The Ministry of Planning and Economic Development noted that the project is expected to create 1,330 job opportunities during its construction, operation, and maintenance stages. The project targets to produce 70,000 tons of green ammonia annually (equivalent to 140,000 tons of CO2 emissions per year, or 3 million tons over its production life).
Minister Rania Al-Mashat highlighted that Egypt’s energy sector “offers numerous opportunities for the development of green hydrogen, as Egypt’s national resources enable the production of large quantities of electricity from renewable sources at highly competitive prices.”
Germany, through its H2Global hydrogen initiative, has secured a 20-year €397 million green ammonia offtake agreement with UAE-based renewables company Fertiglobe. Egypt Green Hydrogen will supply the green hydrogen required for Fertiglobe to produce green ammonia at its plants, which will then be exported to Europe under this agreement. The total project cost is estimated at €500 million, according to a separate statement from Scatec.
Green hydrogen investments
In February, Egypt signed seven memoranda of understanding with international developers focused on green hydrogen and renewable energy in the Suez Canal Economic Zone. This initiative could attract approximately $40 billion in investments over the next decade, according to Reuters.
The Egyptian government has made significant strides in harnessing its green hydrogen potential. Key initiatives include the establishment of the National Green Hydrogen Council and the launch of the National Green Hydrogen Strategy in partnership with the European Bank for Reconstruction and Development, highlighting Egypt’s commitment to transitioning to a green economy.
As part of its National Climate Strategy 2050, Egypt aims to produce green hydrogen at the lowest cost globally, targeting $1.7 per kilogram by 2050, while seeking to capture 8% of the global hydrogen market.