Globeleq to develop a large-scale green hydrogen project
Globeleq intends to enter into long-term off-take agreements with leading companies while supporting their decarbonisation plans.
Globeleq has signed an MoU 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.
Capitalising on Egypt’s best-in-class wind and solar PV resources, well-developed infrastructures, and the Egyptian Government’s investment-friendly regulatory framework, Globeleq aims to produce hydrogen competitively 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 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. 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.
The British Ambassador to Egypt, Gareth Bayley OBE, said, “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, said, “With Globeleq’s ambitious plans, Norway continues to strengthen our investments in green hydrogen in Egypt.”
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 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.”
Ayman Soliman, CEO of the Sovereign Fund of Egypt, said, “Our objective is to maximise 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.”