Egypt approves $4.3mn South Korean grant for green energy infrastructure in Suez Canal

The Egyptian cabinet approved a draft presidential decree endorsing a grant agreement with South Korea to establish green energy infrastructure in the Suez Canal area, with funding of about $4.3mn, according to a cabinet statement on December 17, cited by Al Borsa. 

South Korean investment in Egypt has expanded in recent years across energy, infrastructure and manufacturing, supported by bilateral agreements and development grants. Seoul sees Egypt as a strategic gateway to Africa and the Middle East, while Cairo views the Korean capital and technology as key to its industrial and green transition goals.

According to the statement, the grant covers the development of infrastructure for a liquefied natural gas (LNG) bunkering station, the establishment of an LNG training centre, and the preparation of a long-term, low-carbon development strategy for the Suez Canal Authority.

The project is expected to support increased demand for LNG by enabling the operation of vehicle ferries powered by LNG, while ensuring the stable operation of the training centre. The facility will be used for education and technical training through hands-on instruction using specialised equipment, the cabinet said.

The grant forms part of broader Egyptian-Korean cooperation aimed at supporting the Suez Canal’s green transformation agenda and environmental protection goals. Authorities aim to turn the canal into a more sustainable and environmentally efficient waterway by 2030, in line with global efforts to reduce carbon emissions in maritime transport.

Egypt aims to rapidly expand renewable energy to reach 42% of its electricity generation mix by 2030, focusing on large-scale solar and wind projects across the country. The plan is designed to reduce reliance on fossil fuels and cut carbon emissions.