Tuesday 08 April/2025 – 09:09 AM
Egypt signed with France a cooperation agreement to develop, finance, build, and operate an integrated station for the production of green hydrogen and its derivatives, including green ammonia, in the vicinity of the Ras Shuqair region, on the sidelines of the important visit of French President Emmanuel Macron to Egypt, and within the framework of the great strategic cooperation between the two countries.
The agreement between the General Authority for the Red Sea and the new and renewable energy body came in partnership with the Green Fuel Alliance consisting of the French Edf Renewles and Zero Wasee/Emirati.
Where the signing of the team, the engineer of Kamel, the Minister, the Deputy Prime Minister for Industrial Development, Minister of Industry and Transport, and Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, and Warrick Loumenbar, Minister of Economy, Finance, Industrial Sovereignty and French Development.
Green hydrogen industry and its derivatives
Whereas, the agreement was signed by Major General Mohamed Abdel Rahim, Chairman of the Red Sea Ports Authority, Eng. Ihab Ismail – Chairman of the New and Renewable Energy Authority, Mr. Amr Al -Sawaf, Chairman of the Board of Directors of Zero Wasete and Pipatrice Buffon – President of Edf Renewles
The team, the engineer of Kamel, the Minister, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, stated that this contract comes in implementation of the presidential directives aimed at encouraging and enhancing efforts to localize the green hydrogen industry and its derivatives, and provide an appropriate investment climate, which enhances Egypt’s position as a regional and global center for energy and green fuel. It is also an embodiment of the distinguished and strong relations that link the political leadership in the two countries and the two friendly peoples, and reflects the keenness of the two sides to enhance cooperation between them in a way that achieves common interests, and contributes to achieving the development and luxury of the two friendly peoples.
Adding that the project aims to produce one million tons annually of green ammonia in three stages, starting in 2029, to support the state’s goals in providing clean fuel for ships, in addition to exporting global markets.
Renewable energy projects
Pointing out that this cooperation enhances Egypt’s position in renewable energy projects and supports its efforts in achieving the shift towards the green economy, as this project is distinguished from similar projects in Egypt not to adhere to the state to provide any infrastructure for its components, as it does not depend on the facilities of electricity companies to transfer the energy needed to operate it, and does not impose any financial obligations on the state. Adding that this project is one of the rare initiatives that are fully implemented by the private sector, and requires companies with high financial and technical capabilities, given that it is a long -term investment that requires periods of about fifty years to recover investment expenditures.
The Minister affirmed that the Ministry of Transport will take over coordination with the ministries, bodies and authorities concerned to complete all the necessary legal procedures and approvals with the project company to ensure the implementation of the project in accordance with the required standards.
Licensing fees required to create and renew the project
The Minister of Industry and Transport and Deputy Prime Minister for Industrial Development also added that the project has a direct economic return represented in the returns that the state will earn through the services fees provided by the project company, licensing fees required to construct and renew the project, in addition to the use of lands designated for electricity generation stations from wind and solar energy, as well as green hydrogen manufacturing areas and its derivatives and green ammonia. The state will also benefit from the fees imposed on each ton that is exported, in addition to taxes of all kinds, which will all be paid in the dollar.
The Deputy Prime Minister for Industrial Development, Minister of Industry and Transport, referred to the indirect returns of the project, which includes providing extensive job opportunities, starting with the required workers during the construction phase, then operational workers during the operation and production stage.
The minister also pointed out that the coalition of the French Edf Renewles and Zero Wasee/Emirati alliance will pump direct investments worth 2 billion euros to finance the first phase of this integrated project to produce 300 thousand tons annually from green ammonia, provided that the total investment cost of the three stages reaches 7 billion euros to reach a total production of one million tons annually, funded completely from Before the project company.
The team, the entire engineer, added that the coalition prepared a initial feasibility study to determine the basic requirements of the project, as 368 km² was allocated to the three project stages as regions for generating solar energy and wind in Ras Shukair and 1.2 million meters from the establishment of the factory designated for the three stages in addition to the electricity transmission path with a length of 7 km and a width of 100 meters. The project company will also create a seawater desalination unit to provide the necessary water for all stages of the project.
The project company will also finance and develop a 400 -meter shipping pavement and 17 meters in favor of the Red Sea Ports Authority, with all the necessary facilities for it.
Create stations to generate electricity
Stressing that this project reflects Egypt’s commitment to strengthening its position as a regional center for clean energy, and attracting investments in the field of green economy, in a way that contributes to achieving the sustainable development goals in light of global competition for localizing the green fuel industry and benefiting from its multiple advantages. This project also comes within the framework of the global transformation efforts towards clean energy, which enables Egypt to fulfill its international pledges in the Paris Climate Agreement and the COP27 conference, and the effective contribution to limiting carbon emissions locally and globally
The Minister also explained the importance of the project and its economic and environmental implications, whether through the establishment of stations to generate electricity from renewable sources such as solar energy and wind or reduce greenhouse gas emissions, in a way that contributes to achieving sustainable development goals and thus reducing pressure on natural gas reserves by providing sustainable alternatives to industry and energy. In addition to creating thousands of job opportunities during the stages of development, construction, and operation, which enhances the local economy. In addition to achieving annual export returns by exporting green fuel to global markets. The project will also contribute to adding a new sea port on the Red Sea coast affiliated with the General Authority of the Red Sea Ports, without any financial burdens on the state and gradually localizing the feeding industries, such as the production of electric analyst, solar panels, and wind turbines, which enhances dependence on local production. Also providing green fuel to supply via the Suez Canal, which helps them to keep pace with the requirements of global navigation and adapt to future environmental transformations.
Pointing out that the project company will take charge of training and rehabilitating Egyptian workers, with the aim of gradually reaching 95% of the total direct labor in the project, which contributes to building local cadres specialized in the clean energy sector.
This project is a pivotal step in securing the future of clean energy in Egypt, and strengthening its position as a global green fuel trading center, which opens new horizons for investment and international cooperation in this vital field.
