The Clap:
The Egypt-EU investment wrapped on Saturday, seeing EUR 67.7 billion (c. USD 72.4 billion) committed to development projects through 35 agreements and MoUs, mainly in the manufacturing and green hydrogen production front.
First up: manufacturing
El Araby Group’s chief said in an interview with Al Arabiya business his company is partnering with Taiwan’s Rechi, Japan’s Sharp, as well as another undisclosed Japanese company to build a USD 500 million industrial complex in Quesna, Menoufia.
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The firm also signed an MoU with German home appliances maker Heller to produce their goods utilizing domestically sourced parts in the fourth quarter of 2024 with a total investment of EUR 70 million during the initial three years of production.
Now onto green hydrogen + renewable energy:
Hassan Allam Holding, UAE renewables giant Masdar, BP, and Infinity Power signed an agreement on the sidelines of the conference to establish a new green hydrogen plant in the Suez Canal Economic Zone (SCZONE) at a USD 12 billion investment ticket, Asharq Business reported. The project is slated for operation by 2034, and will boast an 8 GW electrolysis capacity.
What else?
Belgian energy firm DEME Group signed an agreement with the New and Renewable Energy Authority and the Alexandria Port Authority to establish a green hydrogen and ammonia plant with a EUR 24 billion price tag in Gargoub.
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The Sovereign Fund of Egypt and DAI Infrastructure have agreed to establish a USD 10 billion green ammonia project in East Port Said with output geard for export, Enterprise reported.
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An agreement was signed by Egypt’s NREA and the Red Sea Ports Authority with France’s EDF Renewables and Egyptian-Emirati firm Zero Waste for a EUR 7 billion three-phase green hydrogen and ammonia project at Ras Shoukair. The first phase is expected to generate 1 million tons of green ammonia each year.
More:
A green ammonia facility worth USD 4.3 billion will be established in Ain Sokhna by Abu Dhabi’s Ocior Energy They have signed a deal with the SFE for this project at the Port of Ain Sokhna, The plant is mainly serving European markets, meeting the increasing need for environmentally friendly ammonia.
Taqa Arabia and France’s Voltalia will collaborate to construct a USD 3.5 billion green ammonia project at Ain Sokhna, as part of a new agreement with SFE.
The Egyptian Petrochemical Holding Company, Misr Fertilizer Production Company (Mopco), and Scatec and Yara International signed an agreement to produce green hydrogen in Damietta at initial investments of approximately USD 890 mn to initially produce 150,000 tons of green ammonia each year annually at Mopco’s facilities before shipping it to Yara in Norway.
The SFE also signed a contract with Orascom Construction, Scatec, and Fertiglobe for the production of 100 MW of green hydrogen from its Ain Sokhna facility. The trial phase of the plant began in November 2022 with the goal of producing around 13k tons of green hydrogen annually.
Danish company Vestas said it will soon undertake a feasibility study to establish a USD 600 million production plant in Egypt to manufacture wind turbines.
Analyst’s take:
“To me, until these MOUs turn into official agreements and binding contracts, they can only be referred to as “potential”. Once we start seeing one or two MOUs being implemented, we could well see a snowball effect with more MOUs turning into contracts. Granted, companies involved in green energy projects will be key beneficiaries,” Chief Equity Strategist at Rumble Amr Elalfy told us.
Remember:
Egypt wants to position itself as a regional green hydrogen hub, with production targets amounting to 3.2 million annually by 2029 and 9.2 million tons per year by 2040.
IN OTHER Egypt-EU news:
The EU has agreed to extend Egypt EUR 1 billion in macro-financial aid in late 2024, which is the initial portion of a total of 5 billion euros in concessional loans. The initial installment will be provided as soft financing with extended repayment terms and low interest rates.
