China State Construction, together with SK Ecoplant of South Korea, signed a memorandum of cooperation with the Egyptian New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, the Egyptian Suez Canal Economic Zone Authority and the Egyptian Sovereign**. Under the MoU, the parties will work together to invest in the development of a large-scale green hydrogen and green ammonia project in Egypt.
The green hydrogen and ammonia project will run entirely on renewable electricity, with a total capacity of 778 MW of renewable energy power plants planned. This includes 500 MW of photovoltaic power plants and 278 MW of onshore wind farms. In addition, a 250 MW water electrolysis system will be built, aiming to produce 50,000 tons of green hydrogen. This green hydrogen will then be converted into green ammonia and planned for export. The total estimated investment for the entire project is up to US$1.9 billion, with commercial operations scheduled to begin in 2029.
From the perspective of the joint venture, in January 2023, China State Construction signed a memorandum of cooperation with SK Group. According to the MOU, the two companies plan to collaborate on renewable energy projects on a global scale.
From the perspective of market development, CSCEC has been operating in Egypt for more than 40 years, deeply cultivating the local market and maintaining close cooperative relations with the country.
From a technical point of view, SK Ecoplant Korea has extensive experience and expertise in the development of green hydrogen projects. The company has successfully participated in green hydrogen projects in South Korea, Canada, the United Arab Emirates, Oman and other countries, demonstrating its deep strength and extensive influence in this field. Through the cooperation with China State Construction, SK Ecoplant will be able to provide valuable technical support and experience sharing for the green hydrogen and green ammonia project in Egypt, and jointly promote the smooth implementation of the project.
With the low-carbon transformation of the global economy, the international engineering industry has also ushered in new changes, and many new engineering fields and development models have emerged. In this context, China State Construction has reviewed the situation and actively promoted its own transformation and upgrading, transforming from "the world's largest construction contractor" to a comprehensive contractor and investment and construction service provider. In order to achieve this goal, CSCEC actively seeks to cooperate with partners with professional advantages to achieve complementary advantages and jointly promote the implementation of the project. The cooperation with SK Ecoplant of South Korea is based on this consideration, and the cooperation intention of the two parties is a natural one, which will inject new vitality into the development of the global green energy industry.
If this project cooperation can be implemented, it will become the first major landmark project of China State Construction's magnificent transformation from the traditional construction industry to the renewable energy and future energy industry.