December 24, 2024 [Zawya]- The Suez Canal Economic Zone (SCZONE) has attracted $64bn in green hydrogen investments through 12 framework agreements, according to SCZONE Chairperson Waleid Gamal El-Din.

This was announced during a meeting with Egyptian Prime Minister Mostafa Madbouly on Monday, where ongoing projects and initiatives within the zone were reviewed.

The SCZONE has signed 30 Memoranda of Understanding (MoUs), with 14 currently active, Gamal El-Din said. The 12 finalised framework agreements are projected to produce 18 million tons of green hydrogen annually. An additional project with a projected output of 1.3 million tons per year and $7.5bn in investments is also in development.

During the meeting, Gamal El-Din provided an overview of the Suez Canal Economic Zone, highlighting its 455 square kilometre area and its role in generating 100,000 direct and indirect jobs. He emphasized the zone’s strategic location along the Suez Canal, a key route for global trade. The canal facilitates 12% of global trade, handles 10% of all seaborne goods, and accommodates 26,000 vessels annually, he said. The SCZONE boasts six major ports, currently operated by five major companies, which adds to its appeal to investors.

Gamal El-Din further explained that the SCZONE encompasses four industrial areas, employing 14 industrial developers, and houses 400 operational facilities. He detailed the SCZONE’s efforts to attract green hydrogen investments, including a proposed green hydrogen production complex within the zone.

The SCZONE is committed to localising the green hydrogen industry within the economic zone’s industrial areas andports, Gamal El-Din stated, presenting an operational model for the area’s green fuel projects. He said that this initiative addresses the rising global demand for green fuels and utilises the strategic advantages of the Suez Canal Economic Zone.

Gamal El-Din also outlined key investment opportunities within the zone’s green hydrogen sector, highlighting the potential for green hydrogen production, its supporting infrastructure, and ship bunkering. He also noted the potential for localising the manufacturing of electrolyser components, essential for green hydrogen production, as well as wind turbines and solar panels.

In addition to green hydrogen, significant investment opportunities exist in the electric vehicle sector, including batteries and tyres, as well as in the manufacturing of pharmaceuticals, building materials, and textiles, according to Gamal El-Din.

SCZONE also provided updates on several logistical projects. A four-phase water desalination plant in Sokhna, with a total capacity of one million cubic meters per day, is under development. The first phase, with a capacity of 250,000 cubic meters per day, is expected to begin operations in the second half of 2026. Other projects include the Sokhna logistics corridor, scheduled to begin operations in the fourth quarter of 2026, a liquid cargo terminal at Sokhna Port, a 1.5 square kilometre tank farm, and a gas network project in Sokhna.

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