ACWA Power, a prominent water desalination company listed in Saudi Arabia and recognized as a leader in energy transition and green hydrogen initiatives, has entered into an agreement to investigate the possibility of collaborating with Japan's Itochu. The collaboration aims to jointly develop and procure ammonia from a green hydrogen project situated in Egypt. The project is envisioned to have an initial production capacity of 600,000 tonnes per year of green ammonia.

This announcement follows a framework agreement signed by ACWA Power with the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) in December 2023. This agreement aimed at kickstarting the development of the initial phase of the plant.

"We anticipate collaborating with Itochu on advancing our Egyptian Green Ammonia project. We appreciate their vision and partnership, and I am confident that together, we can turn this project into a reality," stated Marco Arcelli, Chief Executive Officer of ACWA Power.

Mr. Takeo Akamatsu, General Manager of the Green Innovation Business Unit at Itochu Corporation, remarked, "Through this collaboration with the esteemed partner, ACWA Power, our efforts to introduce low-carbon/clean ammonia to the maritime sector as a zero-emission fuel alternative will be strengthened. This green ammonia product holds promise as a key source for our ammonia bunkering hub in the Suez Canal, developed jointly with our partner, aligning with the support of the Egyptian government."

ACWA Power's existing green hydrogen portfolio encompasses various projects, notably the Neom Green Hydrogen Project, the world's largest facility solely dedicated to export. This project, developed in collaboration with Air Products and Neom, has achieved an $8.5 billion financial close and secured a 30-year offtake agreement. Additionally, ACWA Power is involved in a plant in Uzbekistan, in partnership with Uzkimyosanoat, a state-owned Uzbek chemical company. Construction on this project commenced in November 2023.

ACWA Power operates as a developer, investor, and operator of power generation and desalinated water plants, managing 82 assets across 13 countries that are either operational, under construction, or in advanced development. The company's workforce comprises over 4,000 individuals, with approximately 60% being locals. With assets worth USD 85.5 billion, ACWA Power can generate 55.1 GW of power and desalinate 8 million cubic meters of water per day. The company plays a crucial role in providing essential services that are vital for sustaining life.