Egypt, China sign agreements to produce Green Fuel at Suez Canal Economic Zone

CAIRO - 17 October 2023: A memorandum of understanding between the Suez Canal Economic Zone and the Chinese United Energy Company was signed Tuesday to produce potassium chloride and a framework agreement for the production of green fuel.

Prime Minister Mostafa Madbouly, Walid Gamal El-Din, head of the Suez Canal Economic Zone, and Liu Zhixiang, head of China Energy Group signed the agreements to produce 1.2 million tons of green ammonia and 210,000 tons of green hydrogen annually. 

Investments amount to $6.75 billion in the industrial zone in Sokhna on an area of 500,000 square meters.

Song Yu, Executive Director of United Energy, also signed an agreement with the Egyptian officials for a potassium chloride production complex that will operate over three phases, starting with the experimental phase of producing 100,000 tons of potassium chloride. 

The complex will be operated by renewable energy stations with a capacity of 150 megawatts to provide the project with green energy to produce 4.1 million tons of potassium chloride.

Investments amount to $8 billion dollars. It was also agreed to export 20 percent of the project’s production to the local market.

The many projects at Suez Canal Economic Zone have made it one of the most important centers for green energy production in the Middle East and Africa.