Egypt has finalized agreements totaling $33 billion with major companies like BP, Masdar, and Germany’s DAI for green ammonia projects, as reported by The National citing a statement from the Egyptian government.
One of these projects, valued at $11 billion, involves Egypt’s sovereign wealth fund partnering with German FAI Infastruktur to construct a green ammonia plant in East Port Said. The second project, costing $14 billion, will see Egypt collaborating with BP, Masdar, and a subsidiary of Emirati company Infinity Power to build another green ammonia plant in Ain Sukhna Port on the Gulf of Suez.
Green ammonia, similar to green hydrogen, is crucial for the energy transition as it has the potential to decarbonize challenging sectors such as fertilizer production.
However, the production of green hydrogen and ammonia is expensive due to the cost of hydrolysis, which relies on wind or solar power. The intermittent nature of renewable energy sources contributes to higher costs, alongside the energy-intensive nature of the hydrolysis process. Additionally, green hydrogen production requires substantial water resources, further adding to expenses.
Egypt has set ambitious goals to harness its wind and solar potential, with the green ammonia projects forming a key part of this strategy. Earlier this year, the country announced plans to install 16.5 MW of new solar capacity in collaboration with the European Union. Furthermore, Egypt aims to expand its wind power capacity by 10 GW, with construction slated to commence in 2026.
The Egyptian government targets sourcing up to 42% of its electricity from renewable sources by 2030, highlighting its commitment to sustainable energy development.