SK Ecoplant to Produce 250,000 Tons of Green Ammonia Annually in Suez Canal

SK ecoplant is partnering with China State Construction Engineering Corp. (CSCEC), the largest state-owned construction company in China, to jointly develop renewable energy and green hydrogen·green ammonia projects in Egypt.

On the 28th (local time), SK ecoplant announced on the 29th that it signed a Memorandum of Understanding (MOU) for the production of green hydrogen and green ammonia linked to renewable energy with CSCEC, Egypt's New and Renewable Energy Authority (NREA), the state-owned Electricity Transmission Company (EETC), the Suez Canal Economic Zone (SCZONE), and the sovereign wealth fund (TSFE) at the Prime Minister's Office in the government complex in Cairo, Egypt. Egyptian Prime Minister Mostafa Madbouly also attended the signing ceremony.

On the 28th (local time), at the Prime Minister's Office in the government complex in Cairo, Egypt, a business agreement ceremony for the production of green hydrogen and green ammonia linked to renewable energy was held. Bae Seong-jun, Head of Energy Business Group at SK Ecoplant (fourth from the left), Wang Zui, CSCEC North Africa Representative (third from the left), Mustafa Madbouly, Prime Minister of Egypt (ninth from the left), and other Egyptian government officials are posing for a commemorative photo. Photo by SK Ecoplant

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Through this project, the two companies plan to build renewable energy power plants with a total capacity of 778MW around the Suez Canal area in Egypt, including 500MW of solar power and 278MW of onshore wind power. The electricity generated here will be used to extract green hydrogen from water through 250MW of water electrolyzers, including Bloom Energy's SOEC (Solid Oxide Electrolyzer Cell). The green hydrogen will be converted into green ammonia, which is easier to store and transport, for export. The annual production of green hydrogen is expected to be about 50,000 tons, and green ammonia about 250,000 tons. Commercial operation is scheduled to begin by the end of 2029, with a total project cost expected to be around 2.6 trillion KRW.

Following this agreement, the two companies will be designated a site by the Egyptian government and jointly begin a feasibility study. Based on the study results, they plan to finalize the specific project scale and schedule.

This Egypt renewable energy and green hydrogen·green ammonia project is the first outcome of the MOU signed in January last year between SK ecoplant and CSCEC to secure a leading position in the global renewable energy market. At that time, the two companies explored joint development of global renewable energy projects with candidate sites in Africa, Asia, and China. SK ecoplant and CSCEC plan to successfully carry out this joint project based on their respective capabilities.

Seongjun Bae, Head of Energy Business Group at SK ecoplant, said, “African countries including Egypt are evaluated to have high potential for green hydrogen production and export based on abundant renewable energy resources and large-scale sites,” adding, “SK ecoplant will continue to establish itself as a key player in global green hydrogen projects, not only in Africa but worldwide, through strategic cooperation with CSCEC.”

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