Egypt studies $5bn green ammonia project in push for clean energy

Egypt is considering a $5bn green ammonia project as part of its strategy to expand clean energy capacity and position itself as a regional hub for hydrogen-based industries, Al Arabia Business reported on April 24.

Egypt is rapidly scaling its green ammonia capacity through strategic hubs, such as the newly announced Mediterranean Green Hydrogen Hub in Alexandria and the €124mn Sokhna project, aiming to capture 8% of the global market by 2040, as per the National Low-Carbon Hydrogen Strategy. 

The plant is planned for Ras Banas in south-east Egypt and will rely on a hybrid renewable energy system with a total capacity of 2,000 MW, split evenly between solar and wind power. The project will operate independently from the national grid.

The project is set to create around 500 direct jobs and more than 3,500 indirect positions, while supporting efforts to localise components of renewable energy projects.

Industry Minister Khaled Hashem held talks with a consortium behind the proposed project, Egypt Ammonia for Green Ammonia, which includes Poland’s Hynfra and Egypt’s Kokswins, to review development plans.

The project is expected to begin production by 2031, with initial investments of about $5bn that could rise to $10bn once the facility reaches full capacity. Annual output is projected at around 400,000 tonnes in the first phase, with the potential to expand to 1m tonnes in later stages.

The plan includes developing export infrastructure, including a dedicated port for green ammonia shipments. Initial exports are expected to generate around $490mn each year, with agreements in place to supply markets in central and eastern Europe. The initiative would strengthen Egypt’s role in green hydrogen derivatives and support long-term industrial and energy diversification.

Egypt’s Integrated Sustainable Energy Strategy aims to source 42% of its electricity from renewables by 2030 and 60% by 2040.