Saudi Arabia’s crude production rose to 8.99m bpd in April: JODI

RIYADH: Egypt and France have signed a €7 billion ($7.6 billion) agreement to develop a large-scale green hydrogen and ammonia production complex near Ras Shokeir on the Red Sea coast. 

The deal, which comes amid heightened economic relations between the two nations, includes the development, financing, construction, and operation of a private-sector-led facility.

EDF Renewables and Zero Waste will lead the project in partnership with the General Authority for the Red Sea Ports and the New and Renewable Energy Authority.

According to a joint statement by the Egyptian Ministries of Industry and Transport, the undertaking will be fully financed and implemented by the private sector consortium, with no financial commitments or infrastructure obligations from the government. 

The initiative will be developed over three phases and is expected to produce up to 1 million tonnes of green ammonia annually, starting in 2029.

Earlier in April, Egypt received French President Emmanuel Macron in an official visit focused on addressing the humanitarian crisis in Gaza and strengthening bilateral economic cooperation.

Macron participated in the Franco-Egyptian Business Forum, where discussions emphasized increasing French investment in Egypt and expanding collaboration in renewable energy, infrastructure, and industry. 

The hydrogen agreement signed during the visit was among the most significant outcomes, aligning with Egypt’s strategy to become a regional hub for clean energy and green fuel exports.

Egypt’s Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir emphasized that the project aligns with national directives to localize the green hydrogen industry and position Egypt as a regional and global leader for progressive environmental practices. 

He stated that this initiative reflects the distinguished relationship between the political leaderships and peoples of both countries and highlights their shared commitment to strategic cooperation for mutual benefit and development.

The first phase of the project will require €2 billion in direct investment and aims to produce 300,000 tonnes of green ammonia per year. 

EDF Renewables Chairwoman Beatrice Buffon and Zero Waste Chairman Amr El-Sawaf signed the agreement alongside Egyptian energy officials. The combined investment across all three phases is projected to reach €7 billion, entirely financed by the project company.

The minister noted that 368 sq. km of land in Ras Shokeir have been allocated for solar and wind energy generation to power the facility, while 1.2 million sq. meters will be used to construct the integrated industrial plant. 

The project also includes the construction of a 400-meter export jetty with a 17-meter draft, as well as a 7-km transmission corridor. A dedicated seawater desalination unit will supply the project’s water needs.

El-Wazir said that this is one of the few long-term projects in Egypt being implemented entirely by the private sector, without any reliance on public infrastructure or electricity grid services, highlighting that the investment is structured to recover costs over a 50-year period. 

The state will benefit from licensing fees, land-use charges, export duties, and taxes— all to be paid in US dollars.

Beyond direct revenues, the undertaking is expected to generate thousands of jobs during the construction and operational phases. 

The consortium has committed to training and employing local labor, with a goal of reaching 95 percent Egyptian participation in the project’s workforce.

El-Wazir added that the initiative will also support the localization of green energy components, including electrolyzers, solar panels, and wind turbines.

This undertaking strengthens Egypt’s position in the global renewable energy landscape and contributes to the country’s transition toward a green economy, El-Wazir explained. 

He also noted its alignment with Egypt’s climate commitments under the Paris Agreement and COP27, as well as its potential to reduce greenhouse gas emissions and preserve natural gas reserves by providing sustainable alternatives for the energy and industrial sectors.

The minister also underscored the strategic importance of providing green fuel for ships transiting the Suez Canal and developing a new Red Sea port under the Red Sea Ports Authority without any fiscal burden on the government.

JEDDAH: Saudi shipping firm Folk Maritime Services Co. has purchased its second vessel in a sign of the growing strength of the Kingdom’s logistics sector.

The company, which is owned by the Public Investment Fund, described the acquisition of the M/V Folk Jazan as a significant step forward in enhancing regional maritime connectivity.

The addition of the second vessel aligns with Saudi Arabia’s National Logistics Strategy, which aims to increase the sector’s contribution to the gross domestic product from 6 percent to 10 percent by 2030.

Registered at Jeddah Islamic Port, the vessel has begun operating on the company’s routes across the Red Sea and Arabian Gulf, offering cost-effective and efficient logistics services that will drive trade growth.

The company’s CEO, Poul Hestbaek, said the acquisition of M/V Folk Jazan expands the firm’s operational capabilities and reinforces Folk’s commitment to supporting Saudi Arabia’s Vision 2030.

“Folk Maritime’s strategic acquisition of its second owned Saudi-flagged container vessel, part of an expanding fleet now totaling six ships, significantly enhances the company’s operational flexibility and reduces dependency on chartered vessels,” Hestbaek noted.

The CEO noted that his company’s fleet expansion, which started with the purchase of “Folk Jeddah” in September, now operating out of Jeddah Islamic Port, significantly strengthens trade operations and underscores Folk Maritime’s dedication to increasing its contributions to the regional economy. 

Built in 2008 by Zhejiang Shipbuilding Co. in China, Folk Jazan has a nominal capacity of 2,015 twenty-foot equivalent units, enhancing operational flexibility and greatly expanding Folk Maritime’s service network, the company stated in a press release. 

Engineered to meet the demands of modern containerized shipping, the vessel achieves a critical balance between capacity and operational efficiency, ensuring reliable service.

Established in 2023 and commencing operations in April 2024, Folk Maritime is dedicated to enhancing the Kingdom’s maritime connectivity by providing reliable shipping solutions that support regional trade.

Through the expansion of its fleet, the company has strengthened the local supply chain and created jobs.

National drive for maritime connectivity

In March, the Saudi Ports Authority, also known as Mawani, announced Mediterranean Shipping Co. would launch the new “Clanga” shipping line at Jubail Commercial Port, a move aimed at bolstering the Kingdom’s investment and logistics landscape, according to the Saudi Press Agency.

The new service will link Jubail with King Abdulaziz Port in Dammam, the Port of Singapore, the Port of Shanghai in China, and the Port of Colombo in Sri Lanka, with a handling capacity of up to 6,000 TEUs.

In February, Mawani also revealed the introduction of five new shipping services by Hapag-Lloyd and Maersk, serving Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port.

According to the authority, these services will further connect Saudi ports to major regional and international hubs, including Aqaba in Jordan, Port Said in Egypt, and Tangier in Morocco, as well as Algeciras in Spain, Jebel Ali in the UAE, Mundra and Pipavav in India, and Salalah in Oman.