Egypt, France sign deal to build green hydrogen plant

Egypt and France have signed a cooperation agreement to build an integrated green hydrogen plant near Ras Shukeir. The deal includes developing, financing, constructing, and operating the facility. It was signed during French President Emmanuel Macron’s current visit to Egypt.

The agreement was signed on Tuesday by Egypt’s Red Sea Ports Authority and the New and Renewable Energy Authority. They partnered with the Green Fuel Alliance, which includes France’s EDF Renewables and Egypt/UAE-based Zero Waste.

Green hydrogen industry localisation

Industry Minister Kamel El Wazir said the agreement follows presidential directives. It aims to localise green hydrogen production, attract investment, and boost Egypt’s role as a hub for green fuel.

He said the project reflects strong ties between the leadership of both countries. It also shows their commitment to mutual interests and development.

The plant will produce one million tons of green ammonia per year. Production will be rolled out in three phases, starting in 2029. The goal is to supply clean fuel for ships and export to global markets.

Renewable energy boost

El Wazir said the project strengthens Egypt’s position in renewable energy. It also supports the shift to a green economy.

Unlike other projects, this one needs no state infrastructure or public utility support. It also places no financial burden on the government.

He said the project is unique because it is fully led by the private sector. It requires companies with strong financial and technical strength. The investment is long-term, with returns expected over fifty years.

The EDF Renewables–Zero Waste alliance will invest €2 billion in the first phase. This phase targets annual production of 300,000 tons of green ammonia. Total investment is projected to reach €7 billion across all phases. The project company will fund the entire amount.

The company will also build a 400-metre loading dock with a depth of 17 metres. This will be handed over to the Red Sea Ports Authority, along with the required infrastructure.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama