Abu Dhabi’s renewable energy company Masdar and its Cairo-based partner Hassan Allam Utilities, which invests in power and water infrastructure, have secured Egypt’s support to develop green hydrogen hubs on the Red Sea and the Mediterranean coasts of the country, targeting up to 4 GW of electrolysers by 2030.

The partners signed two memoranda of understanding (MoUs) with the New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), The Sovereign Fund of Egypt, and The General Authority for Suez Canal Economic Zone (SCZONE) to cooperate on the project development, Masdar announced on Sunday.

Masdar and Hassan Allam Utilities expect to develop the project in stages. In the first phase, they plan to build a green hydrogen production plant to produce 100,000 tonnes of e-methanol per year for bunkering in the Suez Canal. That plant would be operational by 2026. In the following stages, the electrolysis capacity in the Suez Canal Economic Zone and on the Mediterranean could be expanded to up to 4 GW by 2030 to produce 2.3 million tonnes of green ammonia for exports, and to supply green hydrogen to local industries.

Besides boasting a wealth of wind and solar energy resources, Egypt is also located close to markets where demand for green hydrogen is expected to grow the most, Masdar highlighted. The MoUs further strengthen the ties between the United Arab Emirates and Egypt, and represent a step forward in the development of the green hydrogen economy for both countries, the Abu Dhabi company added.

The latest agreements come as the government of Egypt prepares to revise its 2030 renewable energy strategy to include green hydrogen. The nation’s green hydrogen strategy is currently in development and is expected to be released by October 2022, according to Masdar.