Egypt-EU investment conference supports green energy with multi-billion euro deals

CAIRO – 29 June 2024: A number of renewable energy production deals worth billions of dollars were signed during the Egypt-EU Investment Conference that opened in Cairo on Saturday.

One of the most important agreements was signed between the General Port Authority of Alexandria, the Egyptian Agency for New and Renewable Energy Sources (NREA) and an international consortium led by the Belgian company DEME HYPORT Energy.

The agreement concerns a megaproject for the production of green hydrogen and green ammonia.

The project, to be built in Gargoub, west of Matrouh, will require a total investment of €24 billion, of which €3 billion has been allocated to the first phase.

The project will cover an area of ​​1,180 square kilometres and is in line with the Ministry of Transport’s plan to supply up to 2 million tonnes of ecological fuel per year for the EU’s energy needs.

In the presence of Prime Minister Mostafa Madbouly, the Red Sea Ports Authority, the New and Renewable Energy Agency (NREA) and a consortium consisting of France’s EDF Renewable and the Egyptian-United Arab Emirates company Zero Waste signed a cooperation agreement for the production of green hydrogen and green ammonia.

The agreement covers investments worth a total of EUR 7 billion in three phases, of which EUR 2 billion is allocated to the first phase, which is expected to produce 1 million tonnes of green ammonia per year.

The project will be built in Ras Shukeir on the western shore of the Gulf of Suez.

In addition, Madbouly witnessed the signing of an agreement for a green ammonia production project in Damietta between Egyptian Petrochemicals Holding Company, Misr Fertilizers Production Company (MOPCO) and the Norwegian leader in renewable energy systems, Scatec.

The project has an initial investment cost of $890 million and aims to produce up to 150,000 tonnes of green ammonia annually.

The project also involves the generation of 480 MW of renewable energy from solar and wind energy.

In addition, the Sovereign Fund of Egypt (TSFE), Orascom Construction, Scatec and Fertiglobe, a leading ammonia producer, have signed an agreement to produce 100 MW of green hydrogen in Sokhna.

The project aims to produce approximately 13,000 tons of green hydrogen per year, which will be processed into approximately 70,000 tons of ammonia produced from renewable sources.

Ayman Soliman, CEO of TSFE, stated that the project involves the construction of two wind and solar power plants with a total capacity of 270 MW that will power the entire operations.

The Egypt-EU Investment Conference was inaugurated by President Abdel-Fattah el-Sisi and Ursula von der Leyen, President of the European Commission, at the Al Manara International Conference Center in Cairo.

The conference will be held on June 29-30 under the theme “Unlocking Egypt’s Advantage in a Rapidly Changing World” and will explore the role of renewable energy in shaping a brighter future for Egypt.

Various cooperation topics are discussed during the conference, such as the green economy and the circular economy.

Egyptian and EU government officials, industry experts and influential business leaders gathered for a conference to unlock investment opportunities.

The forum sheds light on Egypt’s economic reforms aimed at increasing competitiveness, promoting a green transformation and ensuring resilience in the face of global challenges.

In addition, the conference focuses on several key topics, including financial instruments for investment, technology and entrepreneurship, as well as food and water security.