Singaporean company Destiny Energy plans to invest $210 million to build facilities in Egypt’s Suez Canal Economic Zone (SCZone) that will produce 100,000 tonnes of green hydrogen and green ammonia per year.
The company unveiled the plan during talks in Cairo on Wednesday with Hossam Heiba, CEO of the General Authority for Investment and Free Zones, Egypt’s cabinet said in a statement.
Destiny Energy CEO Vijay Sirse said the plants would be powered by solar and wind energy facilities, adding that this would help reduce overall production costs for both Egyptian companies and the European Union. Energy can account for up to 70 percent of the costs associated with green ammonia production.
Heiba said supplying local factories with green ammonia will lower the carbon footprint of exported products, which is crucial for meeting the EU’s Carbon Border Adjustment Mechanism requirements, thereby improving market access to Egypt’s key trading partner.
Destiny Energy’s plan follows tours by SCZone officials this year to China, South Korea, Singapore and other Asian nations to attract capital into its growing free zones, which Cairo sees as crucial for its drive to increase exports and slash imports.
Further reading:
Further reading:
Egypt has unveiled a set of incentives for companies from China and other Asian countries to invest in its industrial sector, with an emphasis on renewable energy, textiles and garments, electronics and other light products.
Egypt, the third largest Arab economy, secured around 46 percent of the total foreign direct investment (FDI) in Arab renewable energy projects during 2002-2024, the Kuwaiti-based Inter-Arab Investment Guarantee Corporation said in a report last week.
FDI in Egypt’s renewable energy projects, covering solar and wind power as well as green hydrogen, totaled around $161 billion during that period out of the nearly $351 billion put by foreign investors into the sector during that period.
The hydrogen rainbow
- Green hydrogen is produced on a carbon-neutral basis through water electrolysis.
- Turquoise hydrogen is created when natural gas is broken down into hydrogen and solid carbon with the help of methane pyrolysis.
- Blue hydrogen is generated from the steam reduction of natural gas.
- Grey hydrogen is obtained by steam reforming fossil fuels such as natural gas or coal.
- Sometimes other colours are ascribed to hydrogen, based on how it is produced. For red, pink and violet hydrogen, the electrolysers are driven by nuclear power.
- Yellow hydrogen is hydrogen produced from a mixture of renewable energies and fossil fuels.
- White hydrogen is a waste product of other chemical processes, while the use of coal as a fuel produces brown hydrogen.
The hydrogen rainbow
- Green hydrogen is produced on a carbon-neutral basis through water electrolysis.
- Turquoise hydrogen is created when natural gas is broken down into hydrogen and solid carbon with the help of methane pyrolysis.
- Blue hydrogen is generated from the steam reduction of natural gas.
- Grey hydrogen is obtained by steam reforming fossil fuels such as natural gas or coal.
- Sometimes other colours are ascribed to hydrogen, based on how it is produced. For red, pink and violet hydrogen, the electrolysers are driven by nuclear power.
- Yellow hydrogen is hydrogen produced from a mixture of renewable energies and fossil fuels.
- White hydrogen is a waste product of other chemical processes, while the use of coal as a fuel produces brown hydrogen.
