The first green hydrogen production facility in Egypt will be built and run by Egypt Green Hydrogen SAE with the help of a $80 million equity bridge financing from the European Bank for Reconstruction and Development (EBRD).
The financing will be used to purchase and build a 100MW electrolyser facility in Ain Sokhna, Egypt, along with supporting infrastructure and civil work. Green hydrogen will be produced by the Electrolyser, which will be fueled by renewable energy (260 MW of wind and solar). Some of the Egyptian Fertilizer Company’s consumption of grey hydrogen will be replaced by this clean hydrogen (the offtaker).
The Egyptian Fertilizer Company, a division of the local fertilizer manufacturer Fertiglobe PLC, will utilise the hydrogen to create green ammonia. The foreign market will receive this green ammonia for export.
This initiative will serve as a crucial proof of concept and significant turning point in Egypt’s effort to build a green hydrogen and ammonia sector. The initiative is anticipated to increase yearly green hydrogen generation to as much as 15,000 tons. It should result in an annual CO2 reduction of more than 130,000 tons.
The Project is associated with two EBRD Bank policy initiatives: I a continuing Technical Cooperation to assist the government in developing its national hydrogen strategy; and (ii) the Bank’s Low-Carbon Ammonia Roadmap, which was created in collaboration with the International Energy Agency and the Interconnexion France-Angleterre to decarbonize the ammonia sector.
