Egypt strikes $41bn of deals to turn Suez economic zone into global green energy hub

Egypt has signed deals earmarking more than $40bn of investments for renewable energy and green hydrogen as part of a 10-year development plan for the Suez Canal Economic Zone.

The Egyptian government signed seven memorandums of understanding with international developers this week, according to the Egyptian Cabinet's social media pages.

The plan will begin with a a $12bn “pilot programmme” before moving to a $29bn first phase, according to Egypt’s minister of Planning and Economic Development Hala Al-Saeed.

Participating in the signing ceremony on Thursday, Ayman Suleiman, CEO of the Sovereign Fund of Egypt (TSFE), reportedly commented: “Today’s signature reflects the increasing interest of companies to join the Egyptian Green Hydrogen Program.”

He described the initiative as “a landmark, fully funded programme”.

Others participating in the signing ceremonies included authorities from Egypt’s Suez Canal Economic Zone, and the New and Renewable Energy Authority as well as representatives from the private sector

Planning Minister Hala El-Said added that Egypt’s sovereign fund is seeking to promote the country as a regional hub for green energy.

Details of the investments emerged after Egyptian Prime Minister Mostafa Madbouli chaired a meeting of the country's National Green Hydrogen Council on Wednesday.

Egypt’s National Green Hydrogen Strategy includes an ambition to contribute 5-8% to the global hydrogen market.

A first shipment was made from Fertiglobe’s Egyptian green ammonia factory in October in a development described by the company’s own CEO Ahmed El-Hoshy as a “breakthrough in producing and supplying renewable ammonia to the world”.

One month later, the Suez Canal Economic Zone signed agreements with a group of Chinese companies outlining planned investments of $16bn in green hydrogen and sustainable manufacturing, according to the Egyptian government’s state information service.