Egypt has announced two large commercial agreements to expand the country’s production of green ammonia.
In Ain Sokhna, Egypt’s Suez Canal Economic Zone signed a $3 billion deal with a partnership led by EDF Renewables and the Egyptian sovereign wealth fund to produce up to 350,000 tons of green energy for ship fueling. The General Authority of the Suez Canal Economic Zone, the Egyptian Sovereign Fund, the Egyptian Electricity Transmission Company, the Authority of New and Renewable Energy, and EDF Renewables and the Zero-Weste Egypt Alliance signed this first MoU.
Egypt also agreed to manufacture up to 390,000 tons of green ammonia per year in Ain Sokhna with AMEA Power of the United Arab Emirates. The Egyptian government parties and AMEA Power UAE, which is allied with the Al Nowais Group, signed the second MoU.
The first phase of construction will begin with a production capacity of 140,000 tons for ship bunkering. In the first quarter of 2026, the commercial operation will take place. These agreements are in line with the country’s environmental-friendly goals as ammonia is widely regarded as a possible heavy fuel oil alternative that can greatly reduce carbon emissions.
Furthermore, Maersk and Egypt signed a Memorandum of Understanding (MoU) last month in an effort to speed up the supply of green fuels and the global transition to net-zero shipping. It was signed on March 28 to create green ammonia for 12 ships, with the goal of achieving carbon neutrality by 2040.
Egypt and Scatec, a Norwegian renewable energy business, also signed a five-billion-dollar MoU on March 10 to establish a green ammonia project in the SCZone.
Egypt has drawn worldwide corporations to raise investment in the green industry due to its unique geographic location that has an abundance of green energies such as solar and wind. By 2024, the government wants to increase the ratio of green projects to 50% of the investment budget.
