Egypt’s Suez Canal Economic Zone and the Norwegian company Scatec ASA have entered into a groundbreaking memorandum of understanding (MoU) valued at $1.1 billion, marking a significant stride towards the provision of green fuel for maritime vessels. This development was announced by the Suez Canal Authority of Egypt on Sunday, highlighting that the agreement was forged on the sidelines of the United Nations Climate Change Conference (COP28) in Dubai.
The MoU stipulates the annual production of 100,000 tons of green methanol by the year 2027. This initiative is part of a broader endeavor by the Egyptian Cabinet, which has previously witnessed the signing of several MoUs between the Suez Canal Economic Zone and Chinese companies in October, aimed at attracting investments totaling $14.75 billion to Egypt.
According to a statement from the Egyptian Cabinet, Walid Gamal El-Din, the head of the Suez Canal Economic Zone, and Leo Zixiang, the chairman of China Energy, have inked a framework agreement to establish a project for producing 1.2 million tons of green ammonia and 210,000 tons of green hydrogen annually. This project, with investments amounting to $6.75 billion, is set to be located in the industrial area of Ain Sokhna, Egypt, covering an area of 500,000 square meters.
Furthermore, during his visit to the Chinese capital, Beijing, Egyptian Prime Minister Mostafa Madbouly witnessed the signing of an MoU between the Suez Canal Economic Zone and Mr. Song Yu, the CEO of United Energy. This MoU is aimed at investing in the establishment and development of a potassium chloride production complex, to be executed in three phases.
The Suez Canal Economic Zone (SCZONE) of Egypt has been at the forefront of green energy initiatives, aligning with global efforts to combat climate change. The zone signed $83 billion worth of green energy deals and nine agreements at the UN climate summit, far exceeding initial expectations. These developments not only bolster Egypt’s environmental credentials but also enhance its economic prospects through increased investments and technological advancements in sustainable energy.
