Saudi Arabian company Alfanar said on Monday it has signed a memorandum of understanding to build a $3.5 billion green hydrogen project in Egypt.

The facility will produce 500,000 tonnes of green ammonia, which is used in agricultural fertilisers, from 100,000 tonnes of green hydrogen per year.

The project is among seven MoUs signed last week between Egypt and international companies, including Globeleq and Actis, to set up green hydrogen and ammonia production facilities in the Egyptian port of Ain Sokhna.

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Egypt, the host of the upcoming COP27 UN Climate Change Conference, has been trying to position itself as a regional hub for green fuel production. The country has signed a number of MOUs in the past few months including for an $8 billion green hydrogen factory in the Suez Canal Economic Zone. Details such as launch dates have not been disclosed.

Alfanar builds power generation and transmission projects, including renewable power. It operates a 50MW solar project in the Benban Solar Park in Egypt’s Aswan.

Source: Reuters