Egypt agrees deal for $4bn Suez Canal green hydrogen project
Ocior Energy’s plant is expected to produce up to one million tonnes per year by 2030, with first phase due on line in 2027
Abu Dhabi-headquartered Ocior Energy has signed a preliminary agreement with Egypt’s government to spend $4bn on a green hydrogen and ammonia project in the Suez Canal Economic Zone, with final contracts expected to be signed in the coming months.
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Sign up nowOcior’s project was originally agreed during the Egyptian government’s memorandum of understanding signing spree last year, which has resulted in a $83bn pipeline of 20 projects.
However, many of these projects are yet to start construction, with Egypt currently considering the introduction of production tax credits or Carbon Contracts for Difference in order to incentivis the buildout of what could potentially be a lucrative export market.
In December, the government awarded two projects in Ain Sokhna, close to the canal, with so-called “golden licenses”, effectively granting full approval for each to start construction — although this still hinges on the developers taking final investment decision.
While Ocior, founded by Indian national and former Azure Power CEO Ranjit Gupta, has hinted that its project’s location is ideally sited for shipping volumes of green ammonia European markets, it has not publicly disclosed whether it has signed any offtake agreements either overseas or in the domestic market.
Ocior plans to bring the first 100,000-tonnes-a-year phase of its facility on line in 2027, with the full phase capable of producing one million tonnes of H2 per year by 2030, which suggests an electrolyser capacity of around 10GW.
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