Egypt signs agreement to produce green ammonia for Ain Sokhna bunkering

Egypt's Suez Canal Economic Zone has signed an agreement worth $3 billion to produce 350,000 mt/year of green hydrogen and ammonia for bunkering in the Port of Ain Sokhna.

PHOTO: Exhaust gases flow from the funnel of a cruise ship. Getty Images

It has entered the pact with a consortium that includes EDF Renewables, a subsidiary of French utility company Electricite de France (EDF), the Sovereign Fund of Egypt and the Zero-Waste Egypt Alliance.

The first phase of the project will launch in 2024. Green hydrogen production capacity will initially be 140,000 mt/year and target bunker demand, and then be ramped up to 350,000 mt/year by the first quarter of 2026.

Egypt has also signed a separate agreement with AMEA Power, a subsidiary of the Emirati Al Nowais Group, to produce green ammonia in Ain Sokhna with a production capacity of 240,000 mt/year in the first phase.

Having huge potential to produce hydrogen and green ammonia, Egypt is keen on getting involved in more of these projects to support its transition to a “green economy,” Egyptian prime minister, Mostafa Madbouly said in a statement.

Last month, four Egyptian authorities signed agreements with A.P. Moller-Maersk to explore prospects for scaling up green fuel production in the country.