• Partial production starts at the Ain Sokhna green hydrogen project with exports to Europe planned.
• Egyptian government and European partners reaffirm long term support for renewable energy investment.
• Scatec expands solar and green hydrogen footprint with new large scale projects across Egypt.
Egypt has reaffirmed its commitment to becoming a regional hub for green hydrogen and renewable energy as Prime Minister Moustafa Madbouli confirmed that partial production has begun at the 100 megawatt green hydrogen project in the Ain Sokhna Industrial Zone.
The project is being developed by Norwegian renewable energy company Scatec in partnership with the Sovereign Fund of Egypt, Orascom Construction and Fertiglobe. A broader commercial launch is expected in the coming period, with production aimed at supplying European and other international markets.
Madbouli made the remarks during a high level meeting at the government headquarters in the New Administrative Capital to review progress on the project, which is located within the Suez Canal Economic Zone. The meeting brought together senior Egyptian ministers, representatives of European institutions, officials from the zone authority and executives from Scatec, alongside delegates from several European banks.
The Prime Minister highlighted the strength of the partnership between Egypt and Scatec, noting that renewable energy projects delivered in recent years reflect Egypt’s strategy to increase the share of clean energy in the national power mix. He said discussions are under way to raise the renewable energy target beyond 42 percent by 2030 in response to growing investor interest.
Madbouli also referenced the recent inauguration of the first phase of the Obelisk solar power plant in Qena governorate, another Scatec led project. He stressed the importance of completing the second phase by the end of May to support peak summer demand.
Further expansion is planned through the Energy Valley solar project in Minya governorate, which will be developed by Scatec with investments valued at USD 1.8 billion. Financing agreements for the project were signed this week with a group of international lenders.
Egyptian European cooperation was a central theme of the meeting, with Madbouli noting strong backing from the European Union and European financial institutions for green hydrogen and renewable energy initiatives in Egypt.
Minister of Electricity and Renewable Energy Mahmoud Esmat confirmed that the ministry has supported the Ain Sokhna project since inception by securing land and energy supply, and reiterated full government backing for the remaining phases.
Scatec CEO Terje Pilskog welcomed the sustained support from Egyptian authorities and reaffirmed the company’s commitment to exporting green hydrogen from Egypt to Europe. EU Ambassador to Egypt Angelina Eichhorst described Egypt as an emerging global leader in green hydrogen, highlighting the role of European finance in accelerating the country’s clean energy transition.
Author: Bryan Groenendaal
