Saudi firm Alfanar to build green hydrogen plant in Egypt

Saudi firm Alfanar to build green hydrogen plant in Egypt

August 31, 2022









A Saudi company has signed an agreement to build a green hydrogen plant in Egypt. 

The Riyadh-based electrical construction firm Alfanar signed the memorandum of understanding with Egypt’s General Authority of the Suez Canal Economic Zone, Sovereign Fund, Electricity Transmission Company, and New and Renewable Energy Authority. The memo stipulates that the entities will develop a green hydrogen facility in Ain Sokhna, which is south of Suez. The $3.5 billion project aims to produce 500,000 tons of green ammonia from 100,000 tons of green hydrogen per year, Alfanar said in a press release Monday. 

What it means: Hydrogen can be used as an energy source when separated from water. When the hydrogen is separated using power from renewable energy sources, this is referred to as green hydrogen. Green ammonia is another energy formed from hydrogen via renewable energy. 

Green ammonia is more expensive to produce than traditional ammonia, and the gas requires significant energy to produce. On the other hand, ammonia can be easier to store and transport than hydrogen. 

Why it matters: Egypt is seeking to boost its renewable energy capabilities. To this end, the country is seeking investment from Israel as well