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H²Egypt Agrees with Chinese PERIC to Assemble Electrolyzers in Cairo

Electrolyzer for green hydrogen production. (Getty Images)
Electrolyzer for green hydrogen production. (Getty Images)
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H²Egypt Agrees with Chinese PERIC to Assemble Electrolyzers in Cairo

Electrolyzer for green hydrogen production. (Getty Images)
Electrolyzer for green hydrogen production. (Getty Images)

Dalia Samir, Co-Founder and Director of Hydrogen Egypt (H²Egypt), unveiled a partnership deal with Chinese PERIC to assemble and produce parts of the electrolyzer units in Egypt during the first quarter of 2024.

Globally, PERIC is the biggest company in terms of the production of electrolyzer units to produce hydrogen.

Samir informed Asharq Al-Awsat that, in the first phase, the partnership entails technical cooperation to assemble electrolyzer units and to significantly manufacture a portion of them within Egypt.

This partnership would contribute to passing PERIC’s expertise and advanced technology to the Egyptian market.

PERIC Hydrogen Technologies Co., Ltd is a wholly-owned subsidiary of the Purification Equipment Research Institute of CSIC. It is headquartered in Handan City, Hebei Province. It is mainly engaged in the research, design, and manufacturing of hydrogen generation system, as well as the utilization and research development of hydrogen energy.

Currently, PERIC operates six commissioning and machining workshops. The annual production capacity amounts to 350 sets of alkaline-type hydrogen generators and 120 sets of PEM-type hydrogen generators.

Samir added that a high-ranking delegation from PERIC is expected to visit Cairo in September to determine the volume of the company to be established in partnership with H²Egypt and to set a specific date to start assembling and producing parts of the electrolyzer units in Egypt during the first quarter of 2024.

PERIC plans to provide training for the maintenance and operational staff, along with conducting studies aimed at obtaining a stake in the capital alongside other Egyptian shareholders.

Well-informed sources told Asharq Al-Awsat that PERIC signed deals to supply equipment to foreign firms that have previously signed hydrogen production projects with the Egyptian government in the past months.

The deals are at a value ranging between $200 and $300 million.

PERIC exported its products to over 30 countries and regions spanning Europe, North America, the Middle East, East Asia, South Asia, Southeast Asia, and Africa.

In mid-September, H²Egypt is organizing an international conference in Cairo dedicated to the hydrogen industry. The conference will see participation from both domestic and international public and private sectors.

Chinese company PERIC will be present with a high-level delegation to engage in the signing of agreements and memorandums of understanding (MoUs).

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Saudi Petrochemical Companies Projected to Increase Profitability Over Next Two Quarters

SABIC accounted for approximately 69% of the sector’s net profits in Q2 2024, with an 85% growth. (SABIC)
SABIC accounted for approximately 69% of the sector’s net profits in Q2 2024, with an 85% growth. (SABIC)
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Saudi Petrochemical Companies Projected to Increase Profitability Over Next Two Quarters

SABIC accounted for approximately 69% of the sector’s net profits in Q2 2024, with an 85% growth. (SABIC)
SABIC accounted for approximately 69% of the sector’s net profits in Q2 2024, with an 85% growth. (SABIC)

Economic analysts predict that Saudi Arabia’s petrochemical companies will continue to post strong profits in their financial results for the next two quarters of 2024.

They noted that the financial results from the previous two quarters demonstrated solid operational efficiency, increased sales, and the sector’s ability to adapt to changing market conditions. This positive outlook is also supported by improving market conditions and rising demand for petrochemical products.

Companies in the petrochemical sector listed on the Saudi stock exchange (Tadawul) saw a significant increase in net profits by the end of Q2 2024, with a 62% rise to SAR 3.18 billion ($800 million), compared to SAR 1.96 billion ($500 million) during the same period in 2023—an increase of SAR 1.22 billion ($326 million).

This growth in profits is attributed to improved profit margins, higher average prices for key petrochemical products, and an increase in both production and sales volumes.

The sector comprises 11 companies, including SABIC, SABIC Agri-Nutrients, Yansab, Sipchem, Saudi Group, Nama Chemicals, Tasnee, Advanced, Alujain, Chemanol, and Kayan Saudi.

According to their financial disclosures on Tadawul, all sector companies posted net profits in the second quarter of 2024, except for Kayan Saudi and Chemanol, which reported losses of 36% and 177%, respectively.

SABIC accounted for approximately 69% of the sector’s net profits in Q2 2024, with an 85% growth, raising its profits to SAR 2.18 billion, compared to SAR 1.18 billion in Q2 2023. SABIC Agri-Nutrients ranked second in terms of profits, achieving SAR 705 million by the end of Q2 2024, up from SAR 651 million in the same period of 2023.

Yansab saw the highest profit growth among sector companies, with a remarkable 720% increase, reaching SAR 224.8 million in Q2 2024, compared to SAR 27.4 million in the same quarter of 2023.

Mohamed Hamdy Omar, CEO of G-World, told Asharq Al-Awsat that the petrochemical sector is crucial to the Saudi market. The sharp rise in net profits in Q2 2024, led by SABIC, reflects strong recovery and growth, with the sector reporting a 62.4% increase in profits.

He further expected this performance to boost investor confidence and align with Saudi Arabia’s economic diversification goals. However, he emphasized the need for sustained growth to confirm the positive trend, especially given the sector’s sensitivity to external factors such as global economic conditions, oil prices, and geopolitical developments. These factors must be closely monitored for a more comprehensive outlook.

Financial markets expert Obeid Al-Muqati predicted that some stocks within the sector, currently trading at lower market values, could achieve new highs.

He also noted that SABIC, as the leading stock in the sector, tends to reach new highs every two to three years.

He described SABIC as an attractive acquisition target, with the petrochemical sector poised for significant growth in the coming years, potentially surpassing its previous highs.

SABIC’s movement typically influences other companies in the sector, including those in cement, gas, and manufacturing, which are all part of the Basic Materials Index, comprising 45 companies, he added.