Egypt signs €125mn EU grants to boost renewable projects

Egypt has signed two grant agreements worth a combined €125mn with the EU to support renewable energy expansion and the development of green ammonia projects, Al Borsa reported on February 10.

The first grant, valued at €90mn, will be managed by the European Investment Bank (EIB) and is aimed at strengthening Egypt’s electricity grid and expanding renewable energy capacity. The second grant, worth €35mn, will support a green ammonia project in Ain Sokhna being developed by Norway’s Scatec (OSE: SCATC), as part of Egypt’s broader push into low-carbon fuels and green industrial exports.

The agreements were signed during an EU-hosted conference titled “The Future of Sustainable Energy in Egypt 2040: Cooperation for Shared Prosperity”.

The shift toward secure, efficient and sustainable energy systems is a key driver of Egypt’s comprehensive development agenda, supporting economic competitiveness while meeting climate commitments. Egypt’s 2040 energy vision focuses on expanding renewables, improving energy efficiency and maximising the use of diverse resources to reinforce the country’s role as a regional energy hub in the Eastern Mediterranean.

The strategic partnership launched between Egypt and the EU in March 2024 marked a turning point in bilateral relations, with energy at its core through blended finance, investment guarantees and technical assistance. The €7.4bn Strategic and Comprehensive Partnership elevated Egypt-EU relations to their highest level, focusing on macroeconomic stability, investment, and security. The package included €5bn in concessional loans and €1.8bn in investments to support Egypt's economic reforms, alongside specific grants for migration management and the green energy transition.

In addition, the EU’s EFSD+ mechanism and Egypt’s NWFE platform have mobilised climate finance and accelerated green growth.