Egypt has signed a €7 billion agreement to build a major facility for producing green hydrogen and ammonia near the Ras Shoukair area, advancing the country’s clean energy ambitions.
The signing ceremony was attended by key officials, including Deputy Prime Minister and Minister of Transport Kamel el Wazir, Minister of Electricity and Renewable Energy Mahmoud Esmat, and French Minister for the Economy, Finance, and Industrial and Digital Sovereignty Éric Lombard.
The new plant will produce up to one million tons of green ammonia each year. The project will be developed in three stages and aims to support Egypt’s plans to expand its clean fuel supply for shipping while boosting exports to international markets.
Those who signed the agreement include Ehab Ismail, Chairman of the Red Sea Ports Authority; Ihab Ismail, Chairman of the New and Renewable Energy Authority (NREA); Amr el-Sawaf, Board Chairman of Zero Waste Company; and Beatrice Buffon, CEO of EDF Renewables.
Kamel el Wazir said the agreement aligns with presidential directives to accelerate the development of green hydrogen and its related industries. He added that the project supports Egypt’s goal of becoming a major hub for energy and green fuel, both regionally and globally.
He also stressed that the project is being led entirely by the private sector. Due to its long-term nature—it is expected to take nearly 50 years to recover the full investment—financial technology firms will play a key role.
The Transport Ministry will coordinate with other government bodies to ensure all legal steps and approvals are completed. Wazir emphasized that the project must meet both national and international standards.
In addition to its environmental goals, the project is expected to create jobs during its construction, operational, and production phases.
The first phase will receive a direct investment of €2 billion from the EDF Renewables and Zero Waste consortium. This stage will produce 300,000 tons of green ammonia each year. When all phases are complete, total production will reach one million tons annually, with total investment estimated at €7 billion.
A preliminary feasibility study has already been carried out. It identified the core needs for the project and led to the allocation of 368 square kilometers for the facility. This includes land for solar and wind power generation. Another 1.2 million square meters have been set aside for the plant itself.
The project will also involve building port infrastructure. The consortium will finance and develop a 400-meter-long shipping dock with a 17-meter draft, to be managed by the Red Sea Ports Authority.
Wazir said the initiative supports the global shift to clean energy. It also helps Egypt meet its international climate commitments under the Paris Agreement and the COP27 conference, both of which aim to reduce global greenhouse gas emissions.