Egypt, France Partner on 70 Billion Euro Green Hydrogen Ammonia Project

Egypt and France have signed a landmark agreement worth 70 billion euros to develop a green hydrogen ammonia industrial cluster along the Red Sea coast. The project, led by French renewable energy company EDF Renewables and Egyptian firm ZeroWaste, in collaboration with the Egyptian Red Sea Ports Authority and the New and Renewable Energy Authority, aims to establish a large-scale green hydrogen ammonia production base in Ras Shokeir.

The project will be entirely privately financed, with no financial or infrastructure obligations on the government. It is set to be implemented in three phases, with the first phase, costing 20 billion euros, expected to produce 30 million tons of green ammonia annually. By 2029, the project aims to reach an annual production capacity of up to 100 million tons of green ammonia.

To ensure a steady supply of clean energy, the project has been granted 368 square kilometers of land in Ras Shokeir for solar and wind power generation, along with 1.2 million square meters for comprehensive industrial facilities. Additionally, a 400-meter-long export pier with a depth of 17 meters, a 7-kilometer power transmission corridor, and seawater desalination facilities will be constructed to support the project.

Egypt's Minister of Industry and Trade, Kamel El-Wazir, emphasized that the project will be operated by private enterprises on a self-sustaining basis, with an expected investment period of 50 years. The project is anticipated to create thousands of jobs during both the construction and operational phases, with a commitment to train and employ local labor, aiming for 95% of the project team to be Egyptian. Furthermore, the project is expected to stimulate local manufacturing of key green energy components such as electrolyzers, solar panels, and wind turbines.

El-Wazir also noted that the project will provide green fuel for the Suez Canal shipping industry. The new Red Sea port, developed by the Red Sea Ports Authority, will not impose additional financial burdens. This agreement aligns with Egypt's strategic goals of promoting clean energy and exporting green fuels, as discussed during French President Emmanuel Macron's recent visit to Egypt, where he attended the Egypt-France Business Forum and engaged in discussions on renewable energy, infrastructure, and industrial cooperation.

This collaboration between Egypt and France represents a significant advancement in sustainable energy production. The green hydrogen ammonia industry is set to play a pivotal role in reducing carbon emissions and promoting renewable energy sources. By leveraging the Red Sea's strategic location and Egypt's abundant solar and wind resources, the project aims to create a sustainable and efficient energy ecosystem.

The phased implementation of the project allows for a gradual increase in production capacity, ensuring that the infrastructure and technology are adequately developed to meet the growing demand for green ammonia. The first phase, with an investment of 20 billion euros, will focus on establishing the necessary infrastructure and technology to produce 30 million tons of green ammonia annually. Subsequent phases will build on this foundation, ultimately reaching an annual production capacity of 100 million tons by 2029.

This international partnership underscores the importance of global cooperation in driving sustainable development. By combining their expertise and resources, Egypt and France can accelerate the transition to a low-carbon economy. This project not only benefits the participating countries but also sets a precedent for other nations to follow in promoting green energy initiatives.

The green hydrogen ammonia industrial cluster along the Red Sea coast is expected to have a positive impact on the local economy. The project will create job opportunities and stimulate economic growth in the region. Additionally, the production of green ammonia will contribute to the reduction of carbon emissions, aligning with global efforts to combat climate change.

In conclusion, the 70 billion euro agreement between Egypt and France to establish a green hydrogen ammonia industrial cluster is a significant milestone in the global transition to sustainable energy. The project's phased implementation, strategic location, and international collaboration position it as a key player in the green energy landscape. As the world continues to seek clean and efficient energy solutions, initiatives like this one will be crucial in achieving a low-carbon future.