The Suez Canal Economic Zone (SCZone) announced that the Egypt Green Hydrogen project in the integrated industrial zone in Ain Sokhna successfully won a contract worth 397 million euros at the H2Global auction to supply renewable ammonia to the European Union.
The SCZone said that renewable ammonia supplies will be provided from Egypt at a price of one thousand euros per ton until 2033, which will be produced based on the use of green hydrogen.
The H2Global pilot auction is an initiative funded by the German government. Based on this contract, quantities of renewable ammonia will be supplied starting from a potential level of 19,500 tons in 2027, possibly rising 397,000 tons by 2033.
The Fertiglobe, Scatec ASA, Orascom Construction, and the Sovereign Fund of Egypt companies are participating in the contract to guarantee the supply of the green hydrogen necessary to produce renewable ammonia.
Egypt’s unique location and proximity to Europe contributed to its competitive advantage.
The Chairman of SCZONE Waleid Gamal Eddin, said: “The Egypt-EU Investment Conference 2024, marked a vital milestone on Egypt’s pathway to become a global green ammonia hub, as we celebrated the signing of a flagship offtake agreement between Fertiglobe and Egypt Green Hydrogen, the first green hydrogen plant in Africa, located at the SCZONE.”
“As the first agreement under the H2Global auction, the offtake not only demonstrates the EU support to the emerging green hydrogen industry and the realization of Egypt’s potential, but additionally emphasizes Egypt’s determination to reach its vision, and showcase its comparative advantage stemming from its abundant renewables resources, industrial land, and its unique geographic location with ease of access to the world,” he added.”
“The agreement is a testimony of Egypt’s leadership and support in mobilizing its resources to attract foreign direct investments in green projects through the facilitation provided by its stakeholders,” he concluded.
The Egypt Green Hydrogen project was launched during the COP27 climate summit, which Egypt hosted in Sharm el-Sheikh in November 2022, at an investment cost amounting to US$417 million, and the project succeeded, through its experimental production, in exporting the first green ammonia shipment in the world in November 2023 to the state of India.
