Egypt’s General Authority for Investment and Free Zones (GAFI) has teamed up with Polish company Hynfra to develop a $1.6bn green ammonia production facility.
The first phase of the facility, expected by 2030, will produce 400,000 tonnes of green ammonia per year, and the project’s ultimate goal is to scale production to one million tonnes annually.
Hynfra plans to build five green ammonia production facilities serving Central and Eastern Europe, with Egypt selected as a flagship location.
The collaboration was discussed during a meeting attended by Hossam Heiba, Tomoho Umeda (Founder and CEO of Hynfra), Engineer Dr. Hussein El-Ghazawy (Hynfra’s Executive Partner in Egypt), and Ministerial Commercial Counselor Yehia El-Wathik Bellah, Head of the Trade Representation Authority.
The plant will draw on Egypt’s solar and wind energy to power the entire production process.
Surplus electricity generated will support Egypt’s national grid, further advancing the country’s renewable energy goals.
Hynfra also intends to introduce latest technology in green hydrogen production, energy storage systems and water desalination to Egypt. Its green hydrogen production process involves water electrolysis to produce hydrogen, which is then combined with nitrogen under controlled conditions to create green ammonia.
The entire output will be exported to the European Union under long-term agreements, positioning Egypt as a key player in the EU’s strategy to secure sustainable energy supplies.
President Heiba highlighted Egypt’s significant steps toward becoming a hub for green hydrogen and ammonia, including legislative measures like the Green Hydrogen Production Projects Incentives Law and the establishment of the National Council for Green Hydrogen.
He also mentioned the ‘golden license’ programme, designed to streamline the approval process for strategic projects.
These efforts align with the EU’s goal of importing 6 million tonnes of green hydrogen and 4 million tonnes of green ammonia by 2030.
During the discussions, various investment options and potential locations were presented, ensuring access to renewable energy and proximity to export ports.
The President assured Hynfra of comprehensive support from GAFI across all project phases, from permits to operational execution.