Saudi Arabia-based Acwa Power, a global developer of power and desalination projects and a leader in energy transition, has signed the framework agreement for the development of the first phase of a major green hydrogen project in Egypt.

The project, which is being set up at a total investment of over $4 billion, will have a production capacity of 600,000 tonnes per year in the first phase. The capacity is expected to increase to two million tonnes per year once the second phase gets completed.

The agreement was signed between Acwa Power and The Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA).

The framework agreement follows a memorandum of understanding (MoU) signed in early December and marks the next step in the development of this large-scale green hydrogen facility, said Acwa Power.

The signing ceremony took place in the presence of senior officials including Egyptian Prime Minister Dr Moustafa Madbouly, Minister of Electricity Dr Mohamed Shaker, Saudi Arabia’s Ambassador to Egypt Osama bin Ahmed Nugali, TSFE Chief Executive Officer Ayman Soliman, SCZone Chairman Waleid Gamal Eldien and EETC Chairman Engineer Sabah Mashaly and NREA Chairman Dr Mohamed El Khayat, as well as Acwa Power officials CEO Marco Arcelli, CIO Thomas Brostrom, Vice President (Business Development-Green Hydrogen) Driss Berraho and Country Director (Egypt) Hassan Amin.

Arcelli said: “As a first mover in green hydrogen, Acwa Power is proud to bring its expertise in this new and exciting market to Egypt. We commend our partners for their bold step into producing the fuel for the future, for which there will be great demand in Europe and the rest of the world.”