Chairman of China Energy Song Hailiang was present when the announcement was made during a meeting of the Egyptian cabinet.
Madbouly expressed his country's readiness to offer the incentives required to implement the Chinese company's investment in infrastructure for the production of hydrogen and desalination, and he welcomed the move.
China Energy was one of many domestic and foreign businesses that signed memorandums of understanding (MoU) to study the growth of green hydrogen production in the Suez Canal Economic Zone at the end of 2022.
China Energy claims that the project will be developed in two stages. It will include a wind farm, a solar park, a water electrolysis facility, and an ammonia synthesis facility. It will be able to produce 140,000 tonnes of green hydrogen annually once both phases are finished.
The plant will try to export ammonia to European markets in an effort to alleviate Egypt's persistent foreign currency shortage.
At the meeting, the chairman announced that 10 energy projects in Egypt have already been completed by China Energy. Currently, the company is engaged in an interconnector between Egypt and Saudi Arabia: a 700 MW solar project in Kom Ombo.
The business is also considering making investments in the replacement of power lines and water desalination facilities. According to Madbouly, the government is prepared to offer a sizable package of incentives, and the various ministries will work together to support and expedite the completion of these projects.
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