November 16 (Renewables Now) - Dubai-based renewables company AMEA Power LLC unveiled on Wednesday the signing of a framework agreement with the government of Egypt to develop a 1-GW green hydrogen project in Suez Governorate for the production and export of green ammonia.
The company announced on the sidelines of the COP27 summit in Sharm El-Sheikh that it will work together with the Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Co (EETC), the New and Renewable Energy Authority, and the Suez Canal Economic Zone (SCZONE) to deliver the project.
AMEA Power is undertaking the development in two 500-MW stages at the coastal town of Ain Sokhna where, upon completion, the plant is expected to produce 800,000 tonnes of green ammonia per year, powered by 2 GW of wind and solar.
At present, the company is holding advanced talks with several European, Chinese and Japanese companies in relation to the signing of a long-term green ammonia offtake deal. Moreover, it is discussing the potential supply of a portion of the green hydrogen production to the Egyptian Hydrocarbon Corporation.
The Dubai-based developer has already completed a feasibility study and is getting ready to launch the Front End Engineering Design (FEED) in January 2023. It hopes to make a Final Investment Decision (FID) in the next 24-36 months and to have the first 500-MW stage completed in 2027.
“This project is the first of several large-scale clean energy projects that AMEA Power will develop across the region as the Company enters a new phase in its journey and begins to scale up operations across Africa,” Hussain AlNowais, chairman of AMEA Power, said in a statement.
AMEA Power noted that this project is in line with Egypt’s Integrated Sustainable Energy Strategy (ISES), which aims to achieve renewable energy targets of 42% by 2035. The company is also working on the 500-MW Abydos solar photovoltaic (PV) plant in Aswan Governorate, and the 500-MW Amunet wind farm in Red Sea Governorate. Both are at an advanced stage of development, according to it.