- Egypt and France have signed a cooperation agreement to develop, finance, construct, and operate a comprehensive facility near Ras Shokair to produce green hydrogen.
- Minister El-Wazir said this contract implements presidential directives to encourage and enhance efforts to localise the green hydrogen industry and its derivatives and provide a suitable investment climate.
Egypt and France have signed a cooperation agreement to develop, finance, construct, and operate a comprehensive facility near Ras Shokair to produce green hydrogen and its derivatives, including green ammonia. The agreement was made between the Red Sea Ports Authority and the New and Renewable Energy Authority.
They partnered with the Green Fuel Alliance, which consists of the French company EDF Renewables and the Egyptian Emirati company Zero Waste.
The signing comes amid French President Emmanuel Macron’s high-level visit to Egypt and within the framework of the two countries’ significant strategic cooperation.
The signing ceremony was attended by Minister of Industry and Transport Kamel El-Wazir, Minister of Electricity and Renewable Energy Mahmoud Esmat, and French Minister of Economy, Finance, and Industrial and Digital Sovereignty Eric Lombard.
Major General Mohamed Abdel-Rahim, head of the Red Sea Ports Authority; Ihab Ismail, head of the New and Renewable Energy Authority; Amr El-Sawaf, chairman of Zero Waste; and Beatrice Buffon, president of EDF Renewables, signed the agreement.
Minister El-Wazir said this contract implements presidential directives to encourage and enhance efforts to localise the green hydrogen industry and its derivatives and provide a suitable investment climate.
It also embodies the distinguished and strong relations between the political leaderships of both countries and their friendly peoples, reflecting their commitment to enhancing cooperation that achieves mutual interests and contributes to their development and prosperity.
He added that the project aims to produce one million tons of green ammonia annually in three phases, starting in 2029, to support the state’s goals of providing clean fuel for ship fuelling and exporting to global markets.
He pointed out that this cooperation enhances Egypt’s position in renewable energy projects and supports its efforts to transition to a green economy.
This project is distinguished from similar projects in Egypt because the state is not required to provide any infrastructure for its components, nor does it rely on the electricity companies’ facilities to transmit the necessary energy for its operation. It also does not impose any financial obligations on the state.
He stressed that the project is one of the rare initiatives being fully implemented by the private sector. It requires companies with high financial and technical capabilities, as it is a long-term investment that requires periods of up to fifty years to recover investment costs.
Moreover, the minister affirmed that his ministry would coordinate with the relevant ministries, authorities, and entities to complete all legal procedures and necessary approvals with the project company to ensure the project’s implementation according to the required standards.
El-Wazir also explained that the project has a direct economic return, represented in the revenues that the state will earn from service fees provided by the project company.
Add to this the required licensing fees for establishing and renewing the project and the fees for using lands designated for wind and solar power generation stations and areas for manufacturing green hydrogen and its derivatives, including green ammonia.
The state will also benefit from the fees imposed on every ton exported and various taxes, all of which will be paid in dollars.
He also highlighted the indirect return of the project, which includes providing vast job opportunities, starting with the labour required during the construction phase and then the operational labour during the operation and production phase.
Additionally, the minister clarified that the alliance of EDF Renewables and Zero Waste will inject direct investments of 2 billion euros to finance the first phase of this integrated project, which will produce 300,000 tons of green ammonia annually.
He said the total investment cost for the three phases will reach 7 billion euros, achieving a total production of one million tons annually, fully financed by the project company.
According to the minister, the alliance has prepared a preliminary feasibility study to determine the basic requirements for the project. 368 km² have been allocated for the three phases of the project as areas for solar and wind energy generation in Ras Shokair, 1.2 million m² for the construction of the factory designated for the three phases, and a 7 km long and 100 m wide electricity transmission route.
He added that the project company will also establish a seawater desalination unit to provide the necessary water for all project phases.
Furthermore, the project company will finance and develop a 400 m long and 17 m deep loading dock for the Red Sea Ports Authority, installing all necessary facilities.
El-Wazir affirmed that this project reflects Egypt’s commitment to enhancing its position as a regional centre for clean energy and attracting investments in the green economy.
This contributes to achieving sustainable development goals amid global competition to localise the green fuel industry and benefit from its multiple advantages.
It is also part of global efforts towards clean energy transition, enabling Egypt to fulfill its international commitments under the Paris Climate Agreement and COP27 and to contribute effectively to reducing carbon emissions both locally and globally.