Egypt’s GAFI Explores $1.6 Billion Green Ammonia Production Project With Poland’s Hynfra
With an initial investment of $1.6 billion and a production capacity of 100,000 tons annually, GAFI and the polish company “Hynfra” discuss establishing a green ammonia production project.
Mr. Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), met with Mr. Tomoho Umeda, Founder and CEO of Hynfra, and Engineer Hussein El-Ghazawy, Hynfra’s Executive Partner in Egypt, to discuss establishing a green ammonia production plant in Egypt.
Green Ammonia Plant in Egypt
The meeting was attended by Minister Plenipotentiary Yahya Elwathik Bellah, Head of the Egyptian Commercial Service.
Tomoho Umeda announced that Hynfra plans to establish five plants to supply green ammonia to Central and Eastern Europe. Egypt has been selected as the site for one of these plants, with an initial production capacity of 100,000 tons annually upon completing the first phase of construction by 2030. The company also aims to scale up production to reach a total capacity of approximately one million tons annually.
Mr. Tomoho Umeda added that the company would rely on renewable energy sources available in Egypt, such as solar and wind energy, to meet the needs of its plant, ensuring that the production of green ammonia is entirely dependent on clean energy.
The minimum daily production capacities of the power generation stations that the company will establish will be sufficient to meet its requirements for green ammonia production. This means that the company will supply the Egyptian national electricity grid with surplus electricity production on most days of the year, supporting the Egyptian government’s efforts to increase reliance on renewable energy.
Transfer Of Technical Expertise In Green Hydrogen Production
Additionally, the company will transfer its technical expertise to the Egyptian market in sectors such as green hydrogen production, green ammonia production, the establishment of renewable energy storage systems, electrolyser technologies, and water desalination.
The company aims to produce green hydrogen through water electrolysis, followed by the production of green ammonia through the reaction of green hydrogen with nitrogen at high temperatures. All these processes will be powered by renewable energy sources.
A $1.6 Billion Investment
Eng. Hussein El-Ghazawy, the Executive Partner of the company in Egypt, revealed that the initial phase of the company’s project entails USD 1.6 billion in foreign direct investment. This figure is expected to grow to USD 10.6 billion as production capacity scales up to one million tons per year of green ammonia. Notably, the entire production will be allocated for export to the European Union, where the company has secured long-term export agreements.
On his part, Heiba said that Egypt pays special attention to the green hydrogen and green ammonia sectors. He noted that the government has introduced the Green Hydrogen Production Projects Incentives Law, established the National Council for Green Hydrogen, and granted Golden Licenses to several green hydrogen and ammonia projects.
These licenses provide a streamlined, comprehensive approval process for all permits necessary to establish such projects. He also referred to the success of the EU-Egypt Investment Conference, hosted by GAFI earlier this year. During the conference, agreements and memoranda of understanding worth over €67 billion were signed with European governments and companies. These agreements align with Egypt Vision 2030, the nation’s sustainable development framework, with many focused on renewable energy production and its export to European markets.
Green Hydrogen And Green Ammonia Exports To Europe
Mr. Heiba added that the EU aims to import 6 million tons of green hydrogen and 4 million tons of green ammonia by 2030. Furthermore, the Egyptian and European sides are coordinating for Egypt to acquire a large share of the EU’s imports in this sector within the framework of the strategic and comprehensive partnership agreement between the two sides.
Mr. Heiba reviewed the various investment frameworks and the available locations that suit the needs of Hynfra Company in terms of the availability of renewable energy sources and their proximity to export ports. He confirmed GAFI’s support for the company at all stages of the project, starting from granting the necessary licenses and throughout the project’s operational period.
