$37 billion in Egyptian ammonia investments

At the recent Egypt-EU Investment Conference, a series of ammonia agreements were signed between Egyptian authorities and project developers. The New and Renewable Energy Authority (NREA), the Sovereign Fund of Egypt, and the Suez Canal Economic Zone (SCZone) were involved in various agreements, which aim at moving key production projects forward in Egypt. According to two cabinet statements (one and two), more than $37 billion will be invested across the initial stages of projects, ranging in location from the Gulf of Suez to west of the Nile Delta.

DAI Infrastruktur: $11 billion

Germany-based DAI has signed a framework agreement with Egyptian authorities for the further development of Project Ra, a multi-million ton per year production project in East Port Said. As of November last year, DAI has signed offtake agreements to cover 85% of full production capacity, primarily focused on marine fuel. Ammonia production will commence in late 2028.

The location of the plant within the harbour perimeter of East Port Said gives a natural advantage, as potential maritime fuel can be offered to customers while passing through the Suez Canal.

Ioannis Papassavvas, CEO of DAI Infrastruktur in his organisation’s official press release, 3 July 2024

Ocior Energy: $4.25 billion

Within the Suez Canal Economic Zone near Ain Sokhna, India-based Ocior Energy is developing a million ton per year ammonia project, producing 100,000 tons per year from 2027. The new framework agreement will progress development, which is targeting the marine fuel market.

Voltalia: $3.46 billion

France-based Voltalia and project partner TAQA Arabia also signed a framework agreement for the development of a renewable hydrogen “cluster” near Ain Sokhna. In two identical project phases, 1.3 GW of combined wind and solar generation plus 500 MW of electrolysis capacity will be built. The project was launched in December 2022.

Masdar, bp: $14 billion

Under the joint development agreement, bp will join Masadar, Hassan Allam Utilities and Infinity Power to explore a multi-phase, large-scale renewable hydrogen project in Ain Sokhna. The existing trio will “combine” their respective hydrogen projects in the area to create Project Kemet, a single, large-scale, multi-phase project focused on hydrogen and derivative production, including ammonia.

DEME: $2.76 billion

In the west of Egypt (but still on the Mediterranean coast), the Port of Gargoub and an associated industrial zone are being established by the Egyptian government. Belgium-based DEME will develop a three-phase hydrogen and ammonia project, based on wind and solar generation to be built 70km southwest of the port (linked via a dedicated high-voltage transmission line). The first phase of HYPORT Gargoub will feature renewable ammonia production of around 320,000 tons per year. DEME will invest €3 billion for the first phase, and €24 billion overall.

EDF Renewables, Zero Waste: $1.8 billion

The pair will invest a total of €7 billion across three phases, with a hydrogen and ammonia production plant to be built in Ras Shukeir on the western shore of the Gulf of Suez. €2 billion will be allocated for the first phase, which will produce 1 million tons of renewable ammonia each year.

Egyptian Petrochemicals Holding Company, Misr Fertilizers Production Company (MOPCO), Scatec: $0.9 billion

In Damietta to the west of Port Said, the trio will develop up to 480 MW of renewable energy generation and an up to 240 MW of electrolyser capacity to produce renewable hydrogen feedstock. Using this feedstock, renewable ammonia will then be produced at MOPCO’s existing production facility near Damietta. Up to 150,000 tons of renewable ammonia per year will be produced for export. Initial investment from the partners is estimated to be $890 million.

Scatec announced that it has signed a letter of Intent with the European Investment Bank for long-term financing for the project. Also at the conference, Yara Clean Ammonia announced that it will act as offtaker for ammonia from the new Damietta project. The offtake deal adds to a growing list for Yara Clean Ammonia, which will transport and distribute renewable ammonia to its global customer base.

Once the project has reached a final investment decision, the renewable ammonia from this project will help us reliably serve our customers across several market sectors.

Yara Clean Ammonia CEO Hans Olav Raen in his organisation’s official press release, 1 July 2024

The Egypt-EU event also featured the signing of a 20-year hydrogen offtake agreement from Scatec’s Egypt Green Hydrogen project, which will be used as feedstock to produce renewable ammonia at the adjacent EBIC production plant. Plant owner Fertiglobe will act as offtaker. The offtake deal was made possible thanks to another significant milestone: Fertiglobe was announced as the successful bidder in H2Global’s first-ever green ammonia auction. From Egypt, it will ship a total of 397,000 tons of renewable ammonia to Europe over six years, beginning in 2027.