Green Forum • 28 November, 2024 at 7:16 AM
The General Authority for Investment (GAFI) in Egypt has commissioned Polish energy company Hynfra to construct a green ammonia production facility. This initiative aims to leverage renewable energy to produce ammonia for export to the European Union.
Ammonia (NH₃), a compound of nitrogen and hydrogen, is gaining traction as a cost-effective and practical means of transporting green hydrogen. Unlike pure hydrogen, ammonia can be liquefied at significantly higher temperatures, simplifying its storage and transport.
GAFI anticipates a surge in European demand for green hydrogen, projecting an increase from 7.2 million tonnes of non-green hydrogen in 2023 to 20 million tonnes of green hydrogen by 2030. Green hydrogen is produced using renewable energy sources, aligning with global decarbonization goals.
The project's first phase, requiring an investment of €1.5 billion, is set to be completed by 2030. At that point, the plant will produce up to 400,000 tonnes of green ammonia annually. The long-term objective is to invest €9.8 billion to achieve a production capacity of 1 million tonnes per year upon the facility's full completion. The plant will operate on solar and wind energy, with any surplus energy integrated into Egypt's national grid.
Details on the financing of the project have not been disclosed.
Hynfra has broader ambitions to establish five green ammonia plants serving Central and Eastern European markets.
Over the past two years, the company has signed preliminary agreements to develop similar facilities in Jordan, Mauritania, and Ukraine.
This project aligns with Egypt's strategic vision to attract $60 billion in green energy investments in the coming decades, positioning itself as a global hub for green hydrogen and ammonia production.