After a meeting with Egypt’s prime minister Mostafa Madbouly in May, China Energy revealed plans to build a USD 5.1 billion green hydrogen facility in Egypt.
The news was made during a meeting of the Egyptian cabinet, and Song Hailiang, the chairman of China Energy, was present.
Madbouly declared that his nation was prepared to provide the incentives necessary to implement the Chinese company’s investment in infrastructure for the generation of hydrogen and desalination. He also voiced his support for the action.
Many domestic and international companies signed memorandums of understanding (MoU) to research the expansion of green hydrogen production in the Suez Canal Economic Zone at the end of 2022, including China Energy.
The project, according to China Energy, will be developed in two phases. It will feature an ammonia synthesis plant, a wind farm, a solar park, a water electrolysis facility, and more. If all phases are complete, it will be able to produce 140,000 tonnes of green hydrogen yearly.
To help with Egypt’s ongoing foreign currency problem, the factory will try to export ammonia to European markets.
The meeting’s chairman declared that China Energy had already finished 10 energy projects in Egypt. The business is currently working on a 700 MW solar project at Kom Ombo as an interconnector between Egypt and Saudi Arabia.
The company is also thinking about spending money on new electricity cables and water desalination systems. Madbouly claims that the government is ready to provide a substantial package of incentives and that several ministries would cooperate to promote and hasten the completion of these projects.