Korean SK Ecoplant and Chinese state-owned CSCEC (China State Construction Engineering Corporation) are to jointly produce hydrogen and ammonia in the Suez Canal Economic Zone.
Scheduled for 2029, the project will draw in nearly $2 billion in investment. It aims to generate 778 MW of electricity, with 500 MW coming from solar energy and 278 MW from wind power. These renewable energies will produce 50 kilotonnes of hydrogen per year and 250 kilotonnes of ammonia per year.
Once the Egyptian government has allocated a plot of land, the two project sponsors will carry out a feasibility study.
This marks the first foreign investment for Chinese road and transport infrastructure giant CSCEC. The daily Korea Herald reports that SK Ecoplant will be in charge of the electrolyser and the process for converting hydrogen into ammonia. The company already has this kind of experience in Canada.
Egypt Today points out that this agreement is one of 7 signed within the same economic zone, which also cover hydrogen and renewable energies. All worth a total of $40 billion. According to Reuters, another Chinese company, China Energy, is among the sponsors.
To learn more about Egypt and hydrogen? You can read our latest article on the country here.
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Article written by Laurent Meillaud and translated by Mariem Ben Tili
