CSCEC and SK Ecoplant to develop a $1.9 bn green hydrogen project in Egypt
On Feb 28th, China State Construction Engineering Corp. (CSCEC), and SK Ecoplant unveiled a plan to jointly develop a $1.9 billion green hydrogen project in Egypt. The two companies signed a MOU with Egyptian relevant agencies at the Prime Minister’s office in Cairo.
Photo: the signing ceremony
According to the announcement, this project will install a 778MW renewable power plant, including 500MW solar and 278MW wind power, and a 250MW electrolysis system. The plant will be capable of producing 50,000 tons green hydrogen annually and the hydrogen will be used to generate 250,000 tons ammonia which is easy for storage and transportation. The two companies will carry out feasibility study soon. Commercial operation is anticipated to commence by 2029.
It is a little bit surprising for CSCEC to enter such a mega green hydrogen project in Egypt. The company has never engaged in any green hydrogen project before, either in domestic or overseas markets. CSCEC is the largest construction EPC and a major real estate developer in China. In 2022, it reported a revenue of Rmb2.055 trillion ($287 billion), 61% (or Rmb1.265 trillion) coming from housing construction, 24% (or Rmb493 billion) from infrastructure construction and investment, mainly road, airfield, and other transportation infrastructures, and real estate sales accounting for 13.7% (or Rmb282 billion). The company hasn’t released any hydrogen business plan or even a separate renewable energy business developing roadmap as of 2023.
While, in my opinion, this unusual move of CSCEC just underscores the significance of hydrogen for China’s international energy landscape. China’s global energy investments has been shifting from fossil fuel to renewable energy and hydrogen may have superior position on the list.