LONDON and CAIRO, Aug. 29, 2022 /PRNewswire/ — Globeleq, the leading independent power company in Africa, has signed a Memorandum of Understanding with the New and Renewable Energy Authority (NREA), the General Authority for Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt for Investment and Development (TSFE), and the Egyptian Electricity Transmission Company (EETC), to jointly develop a large-scale green hydrogen facility within the Suez Canal Economic Zone.
Globeleq, as lead developer and investor, will develop, finance, build, own and operate the green hydrogen project. It will be developed in 3 phases, totalling 3.6 GW of electrolysers and around 9 GW of solar PV and wind power generation. The first phase will involve a pilot project using a 100 MW electrolyser, and will initially focus on green ammonia fertilisers, while considering other end-uses of green hydrogen in the medium and longer term, including green fuels. Globeleq intends to enter into long-term off-take agreements with leading and creditworthy Egyptian and international companies, while supporting their decarbonisation plans.
Capitalising on Egypt’s best-in-class wind and solar PV resource, well-developed infrastructures, and the Egyptian Government’s investment-friendly regulatory framework, Globeleq aims to competitively produce hydrogen for exports and the local market. Egypt’s unique geographical location, at the crossroads of Africa, Europe, and Asia, with about 13% of the global trade flowing through the Suez Canal, puts the country in a position to become a global green energy hub.
Globeleq has been investing in Egypt since 2003 and currently owns the ARC for Renewable Energy S.A.E. 66 MWp solar PV plant located at the Benban Solar Park near Aswan. Globeleq aims to support the country’s ambitious renewables strategy by developing new solar PV, wind, battery energy storage, seawater desalination and green hydrogen projects in Egypt.
The British Ambassador to Egypt, Gareth Bayley OBE, indicated: “Globeleq is a leading British investor, 70% owned by British International Investment and 30% Norfund, which are respectively the UK and Norway’s development finance institutions. The company has been investing in Egypt for nearly 20 years and we are delighted with the signing of this MOU, which underscores once again the strong relationship between the UK and Egypt. The project also supports both countries’ leadership and ambitions in renewable energy and combating climate change. We look forward to continue working with Globeleq and all the stakeholders involved.”
The Norwegian Ambassador to Egypt, Hilde Klemetsdal, added: “With Globeleq’s ambitious plans, Norway continues to strengthen our investments in green hydrogen in Egypt. This is an example of just the kind of industry solutions that are required for translating the green transition into action. We value our strong cooperation with the Government of Egypt towards the green shift and the fight against climate change.”
Mike Scholey, CEO of Globeleq, said: “Bold and rapid collective action is required to put the world on a sustainable pathway. Egypt is a key country for Globeleq, and we are excited to support the Government of Egypt’s ambitious green agenda and contribute to the fight against climate change.”
Waleid Gamal Eldien, Chairman of SCZONE, mentioned: “The new agreement with Globeleq is a continuation of our commitment to implement Egypt’s vision in the transformation for green economy. The Egyptian government has ambitious energy transition plans, in addition to hosting COP27, and active steps are being taken to make SCZONE a major hub for green hydrogen. We are pleased to partner with Globeleq, one of the major renewable energy companies in the UK and globally, and this partnership reflects the interest of the global entities specialised in investing in such projects as they choose SCZONE as a destination for investment in green fuel projects, to serve the African and international markets.”
Ayman Soliman, CEO of the Sovereign Fund of Egypt, commented: “The partnerships we are witnessing are a translation to the state’s integrated strategy to diversify energy sources and localise green hydrogen production with all its components covering upstream and downstream stages, with the aim of transforming Egypt into a regional green energy hub. Our objective is to maximize the use of Egypt’s renewable energy resources in partnership with global specialised developers, whereby the goals and strategy of The Sovereign Fund of Egypt are realised. We are glad to partner with Globeleq as one of the largest British international companies working in the field of new and renewable energy and infrastructure, with a special focus on energy projects in Africa, and has vast experience in working in Egypt.”