Egypt and the UAE have signed an MoU to develop a 10GW onshore wind farm which will save $5bn in annual natural gas costs.
The agreement was signed between Masdar, renewable energy developer Infinity and Hassan Allam Utilities, in the presence of President Abdel Fattah El Sisi and President HH Sheikh Mohamed bin Zayed Al Nahyan, on the sidelines of the 2022 United Nations Climate Change Conference (COP27) in Sharm El-Sheikh.
When completed, the 10GW wind farm will produce 47,790 GWh of clean energy annually and offset 23.8 million tonnes of carbon dioxide (CO2) emissions – equivalent to around 9 percent of Egypt’s current CO2 emissions.
Mohamed Ismail Mansour, Chairman – Infinity Power, said, “The project will enable the country to save vast amounts of natural gas; thereby attaining economic growth, reduce carbon emissions and provide greater access to sustainable energy sources, enabling Egypt to move forward in its journey towards becoming a green economy.”
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, UAE Special Envoy for Climate, and Chairman of Masdar, said, “The scale of this mega 10 GW onshore wind project – one of the largest winds farms in the world – is a testament to the renewable energy ambitions of the United Arab Emirates and the Republic of Egypt.”
The project will be part of Egypt’s Green Corridor initiative – a grid dedicated to renewable energy projects – and will contribute to Egypt’s goal of ensuring renewable energy makes up 42% of its energy mix by 2035.
In April, Masdar and Hassan Allam Utilities signed two Memoranda of Understanding with Egyptian state-backed organisations to cooperate on the development of 4GW green hydrogen production plants in the Suez Canal Economic Zone and on the Mediterranean coast.
In the first phase, a green hydrogen manufacturing facility will be developed and operational by 2026, able to produce 100,000 tonnes of e-methanol annually for bunkering in the Suez Canal. The electrolyser facilities could be extended to up to 4 GW by 2030 to produce 2.3 million tonnes of green ammonia for export as well as supply green hydrogen for local industries.
Egypt enjoys abundant solar and wind resources and is located near markets where demand for green hydrogen is expected to grow the most, providing robust opportunities for export.