Cairo: Egypt and France have formalized a landmark agreement to establish an integrated green hydrogen and derivatives production complex, including green ammonia, in the Ras Shukeir region. The ambitious project, spanning three phases, is projected to attract total investments of £7 billion, entirely funded by the private sector. Once fully operational, it will produce up to one million tons of green ammonia annually, positioning Egypt as a major global player in the clean energy market.
According to State Information Service Egypt, the first phase, set to begin in 2029, will be led by a partnership between EDF Renewables and Egyptian-Emirati company Zero Waste. This phase alone will see a direct investment of £2 billion to produce 300,000 tons of green ammonia per year. Over the course of the project, a total of 368 square kilometers will be dedicated to solar and wind energy generation, with 1.2 million square meters allocated for the construction of the production facility.
Supporting infrastructure will include a 7-kilometer electricity transmission corridor, a seawater desalination unit to supply water for all production phases, and a 400-meter-long, 17-meter-deep loading berth at the Red Sea port, which the company will finance and build.
Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir, highlighted that what sets this initiative apart is its complete reliance on private sector investment. The project places no financial burden on the state, does not depend on national electricity infrastructure, and does not require public funding for any of its components. With a projected return on investment timeline of up to 50 years, the initiative demands strong financial and technical capabilities from its partners.
The Ministry of Transport will lead coordination efforts with relevant ministries and regulatory bodies to ensure the smooth approval and implementation of the project in line with national and environmental standards.
Beyond its strategic importance, the project is expected to deliver substantial economic benefits. These include revenue from service and licensing fees, land-use payments, export duties, and a variety of taxes, contributing valuable foreign currency to the national economy. Indirect benefits are equally significant, particularly in employment. The project will create thousands of jobs during both the construction and operational phases and will help train a highly skilled local workforce. The project company aims to reach up to 95% local labor participation in direct roles.
In addition to job creation, the project is expected to accelerate the localization of key green energy manufacturing technologies in Egypt, such as electrolyzers, solar panels, and wind turbines. It will also support green bunkering services for ships passing through the Suez Canal, aligning Egypt with the future of sustainable global maritime logistics.
This project is a strategic milestone in Egypt’s pursuit of becoming a leading hub for green hydrogen and clean fuel, reinforcing its international commitments to climate action and sustainable development.