Egypt has started partial production from its 100 MW green hydrogen project in the Suez Canal Economic Zone (SCZONE), with exports already reaching European and United States markets, according to a government statement released on Tuesday.

The project, located in the Ain Sokhna industrial zone, is being implemented through a partnership between Norway’s Scatec, the Sovereign Fund of Egypt, Orascom Construction, and Fertiglobe. Prime Minister Mostafa Madbouly met with the consortium to review progress and reaffirmed the government’s commitment, emphasizing the project’s potential to boost Egypt’s green hydrogen exports globally.

During the meeting at the New Administrative Capital, officials discussed the possibility of increasing Egypt’s renewable energy target beyond 42% of the total energy mix by 2030, noting the high volume of investment interest in the sector.

Minister of Electricity and Renewable Energy Mahmoud Esmat confirmed that the ministry has supported the project since inception by providing essential land and power infrastructure and pledged full backing for the completion of remaining phases.

Scatec is also expanding its solar energy portfolio in Egypt. The first phase of the Obelisk solar project in Naga Hammadi was recently inaugurated, with the second phase scheduled for completion by the end of May. Additionally, Scatec signed $1.8 billion in financing agreements for a large-scale solar station in Minya, named Energy Valley, to be developed with international financing partners.

EU Ambassador to Egypt Angelina Eichhorst hailed Cairo as a global pioneer in green hydrogen, highlighting the success of Egyptian-European cooperation in renewable energy. European bank officials attending the meeting expressed strong interest in supporting Egypt’s ambition to become a regional hub for green hydrogen and green ammonia, extending support to future projects.

Scatec CEO Terje Pilskog and Norwegian Ambassador Erik Hosum reaffirmed their commitment to the partnership and to exporting clean energy to Europe, acknowledging Egypt’s administrative and technical support over the past years.

The meeting was attended by senior officials, including the Deputy Prime Minister for Industrial Development, the Minister of Planning and Economic Development, and the Chairman of SCZONE. Consortium members emphasized that the Ain Sokhna project remains a high priority due to its successful entry into Western export markets.