Egypt’s green hydrogen ambitions are increasingly defined by execution rather than announcements, with Scatec’s 100 megawatt project in the Ain Sokhna Industrial Zone now serving as a functioning pilot for export-oriented renewable hydrogen and ammonia.
Partial production began in 2023, when hydrogen generated by the project’s pilot electrolyzer was used to produce renewable ammonia at Fertiglobe’s facilities in Egypt, providing one of the earliest operational reference points for the country’s hydrogen strategy.
That initial output enabled the production and shipment of ISCC PLUS–certified renewable ammonia, delivered to Unilever for use in near-zero-emissions synthetic soda ash production in India. While volumes remain limited, the certification milestone is significant in a market where regulatory alignment and traceability increasingly determine access to international offtakers, particularly in Europe.
The project is being developed by Norway’s Scatec in partnership with the Sovereign Fund of Egypt, Orascom Construction, and Fertiglobe, and remains among the most advanced hydrogen initiatives in the Suez Canal Economic Zone. The location reflects a deliberate export-oriented design, offering proximity to maritime infrastructure and established industrial facilities. At 100 megawatts, however, the project sits firmly in the pilot-to-early-commercial category rather than at industrial scale, shaping both its economic profile and near-term market relevance.
Projects of this size are typically structured to validate supply chains, certification pathways, and operational integration rather than deliver cost-competitive hydrogen at scale. Electrolyzer efficiency, renewable power costs, and downstream conversion to ammonia remain decisive variables, particularly once transport to European markets is included. As a result, Ain Sokhna’s current value lies less in volume delivery and more in de-risking the technical and regulatory foundations required for expansion.
The consortium expects to reach Final Investment Decision on the full-scale project in the coming months, a step that will determine whether the initiative can transition from pilot validation toward materially larger capacity. FID will also clarify the extent to which long-term offtake agreements, pricing structures, and financing frameworks are sufficiently advanced to support scale-up.
Government support continues to play a central role. Prime Minister Moustafa Madbouli has reiterated Egypt’s backing for hydrogen development during high-level meetings involving energy, industry, planning, and transport ministries, alongside representatives from the European Union, Norway, and European financial institutions. The presence of European stakeholders underscores how closely Egypt’s hydrogen trajectory is tied to external demand signals and financing mechanisms linked to Europe’s decarbonization targets.
European officials have acknowledged Egypt’s progress, but the structural gap between pilot-scale production and the multi-gigawatt capacity implied by European import scenarios remains substantial. Egypt has moved faster than many regional peers in establishing operational pilots and international partnerships, yet scaling from 100 megawatts to export-relevant volumes will require not only capital but also sustained policy alignment, infrastructure development, and market certainty.
