Saudi Arabia's ACWA Power has officially signed a groundbreaking agreement for the $4 billion initial phase of a massive green hydrogen project in Egypt. The ambitious project aims to establish a capacity of 600,000 metric tons of green ammonia annually, leveraging the sustainable power generated by wind and solar farms.

This significant agreement comes as a follow-up to a memorandum of understanding inked in December 2022, involving key stakeholders such as the TSFE), SCZone, the EETC, and the NREA. ACWA Power, a prominent player in the energy sector, has positioned itself at the forefront of this strategic venture, marking a crucial step in Egypt's journey towards becoming a leading global producer of green hydrogen.

Expressing enthusiasm about this transformative initiative, Marco Arcelli, Chief Executive of ACWA Power, emphasized Egypt's strategic positioning in the global green hydrogen landscape. He stated, "Egypt is well-positioned to become one of the world’s top producers of green hydrogen, and we are elated to be a part of the country’s energy transition." This sentiment underscores the company's commitment to contributing to Egypt's sustainable energy goals and aligning with the broader global transition towards green and renewable solutions.

The project's first phase, with a staggering $4 billion investment, will focus on the production of 600,000 metric tons of green ammonia annually. The choice of powering the facility with energy from wind and solar farms underscores the commitment to clean and sustainable energy sources, aligning with global efforts to reduce carbon emissions and combat climate change. The scale of this initial phase positions it as a significant player in the emerging green hydrogen market.

ACWA Power has been actively pursuing green hydrogen projects on a global scale, showcasing its commitment to sustainable energy solutions. In November, the company marked a milestone by breaking ground on a green hydrogen project in Uzbekistan. The initial phase of this venture aims to produce 3,000 metric tons of green hydrogen annually. Upon completion of the planned second phase, the project will harness 2.4 gigawatts (GW) of wind energy to drive the production of 500,000 metric tons of green ammonia each year. This diverse portfolio of green hydrogen projects highlights ACWA Power's dedication to driving innovation and sustainability across various regions.

Notably, ACWA Power utilized the stage of COP28 in Dubai to solidify its commitment to advancing green hydrogen initiatives globally. The company secured agreements to develop green hydrogen projects in both Jordan and Indonesia, further reinforcing its position as a key player in the international green energy landscape.