Masdar and Hassan Allam (HA) Utilities, a subsidiary of Hassan Allam Holding, will form a strategic alliance to develop green hydrogen production plants in the Suez Canal Economic Zone and on the Mediterranean coast, to produce up to 480,000 tons of green hydrogen annually, the Egyptian cabinet said in a statement.
"In the first phase of the project, Hassan Allam Utilities and Masdar aim to establish a green hydrogen manufacturing facility, which would be operational by 2026, producing 100,000 tonnes of e-methanol annually for bunkering in the Suez Canal", Amr Allam, chief executive of Hassan Allam Holding, was quoted as saying by the UAE's state news agency (WAM).
"The electrolyser facilities in the Suez Canal Economic Zone and on the Mediterranean could be extended to up to 4 GW by 2030 to produce 2.3 million tonnes of green ammonia for export as well as supply green hydrogen for local industries", he added.
Green hydrogen - obtained by passing renewably-produced electricity through water to split the element from oxygen - has been touted by some as a key fuel for energy users looking to cut greenhouse gas emissions.
Both the UAE and neighbour Saudi Arabia have set out big ambitions for hydrogen, amid a deepening economic rivalry between the two countries.
UAE Energy Minister Suhail al-Mazrouei said in January his country aims to capture around a quarter of the global market for the fuel, while Saudi Arabia's energy minister said in October the kingdom wants to be the world's top hydrogen supplier.