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Egypt gets a new USD 1.6 bn green hydrogen plant: Egypt’s General Authority for Investment and Free Zones (GAFI) is partnering with Poland-based Hynfra to establish a USD 1.6 bn green ammonia production plant, according to a statement. The plant will have an annual production capacity of 100k tons during its first phase, and is scheduled for completion by 2030. The hydrogen produced will be exported to Europe through long-term offtake agreements Hynfra has already signed with players in the continent.
More to come: There are plans to increase the project’s investments up to USD 10.6 bn for later phases while scaling up its production capacity to reach 1 mn tons. No more details on the timeline were disclosed.
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A boost for Egypt’s grid? The company will build its own battery storage, and solar and wind energy facilities to power the daily production in the plant. Surplus from the generated electricity will then be fed into the Egyptian national grid most days of the year, the statement said.
REFRESHER- Egypt has big hydrogen plans: Egypt launched its National Low Carbon Hydrogen Strategy in September, mapping out how the country can achieve the ambitious goal of potentially capturing between 5-8% of the global hydrogen market by 2040. The strategy sees Egypt producing up to 5.8 metric tons per annum of green hydrogen, which will require up to USD 60 bn in investments.
Some projects are already underway: UAE-based urea and ammonia exporter Fertiglobe secured a EUR 397 mn offtake agreement from the German government’s H2Global program last month to supply green ammonia to the EU from its Egyptian facilities between 2027 and 2033, securing 10% of Germany’s annual ammonia needs. The firm also sent the world’s first ISCC PLUS-certified (International Sustainability and Carbon Certification) green ammonia shipment to India from its electrolyzer facility in Egypt’s Suez Canal Economic Zone last December.
AND- Hynfra is active elsewhere in the region: Jordan Green Ammonia (JGA) — a JV formed between Poland-based Hynfra and Jordan-based Fidelity Group — is building a USD 1.6 bn green ammonia and hydrogen facility in the Aqaba Special Economic Zone.
