Egypt advances green hydrogen ambitions with Alexandria project

A four-company consortium has signed a memorandum of understanding (MoU) to explore developing a major green hydrogen hub in Alexandria, as Egypt moves to enhance its clean energy strategy, Al Akhbar reported on April 21. 

The initiative is expected to significantly reduce carbon emissions associated with fertiliser production, while strengthening Egyptian plans to position the North African country as a regional and global hub for sustainable energy.

The alliance brings together Abu Qir Fertilisers and Chemical Industries (EGX:ABUK), Alexandria Fertilisers Company (a subsidiary of Levamore Holding), Orascom Construction (EGX:ORAS), and United Energy Group-UEG (HKEX:0467). The agreement was signed on the sidelines of the Egypt Energy Show (EGYPS 2026).

Under the proposed plan, UEG and Orascom Construction will undertake technical feasibility studies to generate 500 MW of renewable energy from wind and solar sources. This energy will be used to produce green hydrogen, a key component in decarbonising heavy industry.

Meanwhile, Abu Qir and Alexandria Fertilisers will assess how to integrate hydrogen into ammonia production, targeting an output of approximately 480 tonnes per day. The companies will also collaborate on securing access to local resources and infrastructure necessary to support the project.

The project represents growing momentum in the MENA towards green hydrogen as a cornerstone of future energy systems, particularly in export-oriented markets seeking low-carbon alternatives.

Egypt's National Low-Carbon Hydrogen Strategy aims to capture up to 8% of the global hydrogen market by 2040, potentially contributing $18bn to GDP while creating over 100,000 jobs. The plan is currently being executed through a phased approach that includes major 2026 milestones, such as the development of €124mn Sokhna Green Ammonia project supported by the EU.