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Wednesday, 2 November 2022

Qatar is eyeing a USD 1 bn green hydrogen and ammonia project

Qatar’s sovereign wealth fund might want in on our green hydrogen ambitions: The Qatar Investment Authority (QIA) is considering investing in a green hydrogen and ammonia project in the Suez Canal Economic Zone, Al Borsa reported yesterday, citing unnamed sources familiar with the matter.

What we know: More than USD 1 bn will be invested in the facility, which will produce green fuel for ships and for export, the newspaper reports. Qatar Energy and the Sovereign Fund of Egypt agreed on the project’s specs during President Abdel Fattah El Sisi’s visit to Doha in September, Al Borsa quotes its sources as saying. Oil Minister Tarek El Molla joined El Sisi on the trip.

What we don’t: The report didn’t provide any information on how much fuel the facility will produce, when QIA could finish feasibility studies, or what the construction timeline might look like.

We’re expecting inflows from Qatar: Following Doha’s pledge to invest USD 5 bn in Egypt, the two sides have been in talks over potential investments from Qatari firms and the QIA, but nothing has yet been officially announced. The wealth fund could join other Gulf nations buying up Egypt’s ports with an investment in Damietta Port, and the two countries have held talks about joint investments in oil and gas and in local listed firms, while Qatar Energy has been deepening its presence in our oil and gas sector this year.

Egypt is positioning itself as a regional hub for green energy: The government is making moves to capitalize on investment momentum ahead of COP27 by establishing the SCZone as a regional green energy hub. International companies have signed USD 33 bn worth of preliminary agreements for green ammonia and hydrogen projects this year, the most recent of which was with Maersk for a huge USD 15 bn facility capable of producing 3 mn tons of fuel a year.

Expect more on this at COP: The government is expected to make a string of green hydrogen announcements — including the national hydrogen strategy — and sign final agreement with a number of companies at COP27.

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