SK Ecoplant, the green business unit of SK Group [210980:KS], will collaborate with China State Construction Engineering Corporation (CSCEC) [601668:CH], the world’s largest construction contractor, on a USD1.9bn renewable energy project in Egypt, as reported by the Korea Economic Daily on February 29. The project involves the construction of a power plant with a total installed capacity of 778 megawatts (MW), including 500 MW from solar and 278 MW from onshore winds. In addition, the two firms plan to build a 250-MW water electrolysis system that uses renewable energy to produce 50,000 tons of green hydrogen annually, as well as a facility that converts the hydrogen into 250,000 tons of green ammonia for exports. With a total investment of around KRW2.6tr (USD1.9bn), the project is expected to start commercial operation in late 2029.

This project represents the first joint project developed under a memorandum of understanding (MOU) signed by SK Ecoplant and CSCEC in January 2023. According to the MOU, the two sides target unexplored renewable energy markets in Africa, Asia, and the Chinese mainland. Bae Sung-joon, head of SK Ecoplant’s energy business, underscored the high potential for green hydrogen production and exports in African countries like Egypt due to rich renewable energy resources and large sites. Furthermore, this green hydrogen project is part of the seven agreements recently inked by Egypt with international developers. With a combined investment of over USD40bn, these agreements focus on implementing green hydrogen and renewable energy projects in the Suez Canal Economic Zone (SCZONE) over the next decade.

Sources:

https://www.kedglobal.com/energy/newsView/ked202402290015

https://www.egypttoday.com/Article/3/130746/SK-Ecoplant-CSCEC-cooperate-to-build-2B-green-hydrogen-project

https://www.koreaherald.com/view.php?ud=20230105000536