Voltalia & TAQA Arabia ink deal for green energy cluster in Egypt

06 Jul '24

17 min read

Voltalia & TAQA Arabia ink deal for green energy cluster in Egypt

Pic: Adobe Stock

Insights

Voltalia and TAQA Arabia have signed a framework agreement to develop a green hydrogen and renewable energy cluster in Egypt.
Backed by Egyptian government officials and the European Commission, the project involves two phases with 500 MW electrolyzers each.
It aims to produce over 130,000 tons of hydrogen annually, contributing to Egypt's green economy.

The Egypt-EU Investment Conference was held under the auspices of Ursula von der Leyen, President of the European Commission, and Abdel Fattah El-Sisi, President of the Arab Republic of Egypt.

With its partner TAQA Arabia, Voltalia is continuing to develop a cluster combining renewable energy and green hydrogen production.

The framework agreement is a continuation of a Memorandum of Understanding (MoU) signed in December 2022 to develop a cluster combining green hydrogen production with renewable power generation. The project will be implemented in two identical phases, each comprising a 500-megawatt electrolyzer powered by more than 1.3 gigawatt of solar and wind energy. The facility will have an annual production capacity exceeding 130,000 tons of hydrogen for each phase. It will be located at a greenfield site near Ain Sokhna port in the Suez Canal Economic Zone.

The signing ceremony was attended by H.E. Dr. Mostafa Madbouly, Egypt’s Prime Minister, H.E. Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy, and Dr. Hala Al-Saeed, Minister of Planning and Economic Development. Representatives from the Egyptian government included Mr. Ayman Soliman, CEO of the Sovereign Fund of Egypt (TSFE), Mr. Waleid Gamal El-Dein, Chairman of the General Authority of Suez Canal Economic Zone (SCZONE), Dr. Mohamed El-Khayat, Executive Chairman of the New and Renewable Energy Authority (NREA), and From TAQA Arabia Eng. Khaled AbuBakr, Chairman of TAQA Arabia and Ms. Pakinam Kafafi, CEO of TAQA Arabia, On Voltalia’s side, Eng. Karim El Azzawy, Voltalia’s Country Manager for Egypt and Jordan, and Ms. Angela Africano, Voltalia’s Head of Special Projects.

Sebastien Clerc, CEO of Voltalia said: “Egypt has promising opportunities to enhance its regional leadership in green hydrogen production and export within the country’s plans for green transformation. Voltalia is working hard to support these plans by signing a framework agreement in partnership with TAQA Arabia, which has great experience in the energy sector. This landmark project will contribute significantly to Egypt's transition to a green sustainable economy. The project will enhance Egypt energy security by becoming less reliant on fossils fuels and achieving sustainable development goals.”

Ms. Pakinam Kafafi, CEO of TAQA Arabia, said: “TAQA Arabia is committed to contribute in building the green economy in Egypt, in line with the state’s efforts. This commitment is reflected in a continuation to our operations through strategic partnerships with the most important players in the energy sector. As such, we sign this framework agreement with the French Voltalia, NREA, SCZone, and TSFE.”

Eng. Khaled Abubakr, chairman of TAQA Arabia, added: “This conference reflects the EU’s confidence in Egypt’s economic achievements evidenced by the economic reform programs implemented by the government over the past decade. These reforms include exceptional efforts to increase the share of renewable energy.”