SK Ecoplant and CSCEC Launch $1,9 Billion Green Hydrogen Project in Egypt for Renewable Energy Revolution.
SK Eco Plant, an environmental and energy company, will begin joint development of renewable energy, green hydrogen, and green ammonia projects in Egypt with CSCEC (China State Construction Engineering Corp., China’s largest state-owned construction company).
On the 28th (local time), SK Eco Plant held a meeting with major companies such as CSCEC, the Egyptian New and Renewable Energy Agency (NREA), the National Electric Transmission Company (EETC), the Suez Canal Economic Zone (SCZONE), and the Sovereign Wealth Fund (TSFE) at the Prime Minister’s Office in Cairo, Egypt. It was announced that a ‘business agreement (MOU) for the production of green hydrogen and green ammonia linked to renewable energy’ was signed with a government agency. The signing ceremony was attended by Egyptian Prime Minister Mostafa Madbouly, adding significance.
CSCEC is China’s largest state-owned construction company with a presence in 77 countries around the world. As of 2023, it ranked 3rd in the world according to ENR (Engineering News Record), an American construction engineering magazine.
If this project progresses, both companies will build a renewable energy power plant with a total capacity of 778 MW, including 500 MW of solar power and 278 MW of onshore wind power. The power generated here extracts green hydrogen from water through 250 MW water electrolyzers, including the Bloom Energy SOEC (solid oxide water electrolyzer). Green hydrogen will be converted into green ammonia, which is easy to store and transport, and exported. Annual green hydrogen production is expected to be approximately 50,000 tons, and green ammonia production is expected to be approximately 250,000 tons. Commercial operation is expected to begin at the end of 2029, and the total project cost is expected to be approximately 2.6 trillion won. With this agreement, both companies will receive a site designation from the Egyptian government and jointly begin a feasibility study. Based on the survey results, we plan to confirm the specific project scale and schedule.
SK Eco Plant and CSCEC plan to successfully carry out this joint project based on the capabilities of each company. SK Eco Plant is fully equipped with an integrated solution for the green hydrogen value chain, that is, from renewable energy business development to core equipment production, green hydrogen production, and green ammonia conversion. SK Eco Plant is also participating in the Canada-Europe intercontinental green hydrogen project and the UAE-Oman green hydrogen and green ammonia projects. CSCEC is evaluated to have high business influence in Egypt through approximately 40 years of business experience, as well as maintaining friendly relationships with the government and market.
Egypt has great renewable energy potential based on its abundant sunlight, desert climate, and large territory. Solar power has the advantage of long sunshine hours and fewer cloudy days. Wind power also has high-quality wind resources thanks to the strong wind speeds in the Gulf of Suez and the east and west of the Nile River. The Egyptian government has also set a national goal to increase renewable energy resources from 3.1GW in 2020 to 13.2GW by 2030.
Based on these renewable energy resources, Egypt has recently emerged as a center for global green hydrogen projects. If the abundant renewable energy potential is realized, it is expected that green hydrogen production will be possible at a cheaper price than in other regions. With such expectations, it is known that more than 20 green hydrogen projects are underway in Egypt alone. The Egyptian government is also preparing multifaceted support with the goal of occupying 5% of the global hydrogen market by 2040.
Meanwhile, this Egyptian renewable energy, green hydrogen, and green ammonia project is the first outcome of the MOU signed between SK Eco Plant and CSCEC in January last year to dominate the global renewable energy market. At the time, the two companies were seeking joint development of global renewable energy projects with candidate locations including Africa, Asia, and China.
Bae Seong-jun, head of SK Eco Plant’s Energy Business Division, said:
African countries, including Egypt, are evaluated as having high potential for green hydrogen production and export based on their abundant renewable energy resources and large-scale land.
“SK Eco Plant will pursue strategic cooperation with CSCEC.” “We will continue to position ourselves as a key player in green hydrogen projects not only in Africa but also globally.”
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SK Ecoplant and CSCEC Launch $1,9 Billion Green Hydrogen Project in Egypt for Renewable Energy Revolution. source
