Egypt Extends ACWA Power Green Hydrogen MoU And Approves 600 MW Solar Project For Green Ammonia

Egypt has approved a one-year extension of its memorandum of understanding (MoU) with Saudi Arabia-based renewable energy developer ACWA Power to advance a major green hydrogen and green ammonia project. The decision was taken during a meeting of the National Council for Green Hydrogen, chaired by Prime Minister Mostafa Madbouly at the government headquarters in the New Capital.

The proposed project aims to produce 66,000 tons of green hydrogen and 500,000 tons of green ammonia annually. The extension will provide additional time for the project partners to advance development activities and strengthen cooperation towards establishing large-scale clean fuel production in Egypt.

During the same meeting, the council also approved a land allocation request submitted by renewable energy developer Acure. The approval covers a 12-square-kilometer site in West Zafarana, which will be used to develop a 600-megawatt solar power project. The facility will supply renewable electricity to the pilot phase of Acure’s planned green ammonia production plant.

The ammonia project is expected to begin with an initial production capacity of 100,000 tons per year. The proposed solar installation will play an important role in providing clean electricity for the production process and supporting the development of low-carbon industrial operations.

These approvals reflect Egypt’s continued efforts to expand its renewable energy capacity and establish itself as a major international hub for green hydrogen and ammonia. The country is seeking to attract international investors and developers to support its clean energy ambitions while reducing emissions from industrial activities.

In early 2024, Egypt introduced its National Low-Carbon Hydrogen Strategy to capture a significant share of the growing global hydrogen market. The strategy focuses on developing domestic production capabilities, supporting industrial decarbonisation and increasing the country’s participation in international clean fuel supply chains.

To encourage investment, the government has introduced several incentives for renewable energy and hydrogen projects. These include tax exemptions and reductions on equipment and exports, lower seaport fees and simplified administrative procedures. The measures are intended to reduce project development costs and accelerate investment decisions.

During the council meeting, Minister of Electricity and Renewable Energy Mahmoud Esmat presented an update on ongoing cooperation with international energy partners. Officials also discussed establishing a unified framework to address common challenges affecting hydrogen project implementation.

Through these initiatives, Egypt aims to strengthen international partnerships, expand renewable electricity generation and develop the infrastructure needed to support its emerging green hydrogen economy.