Egyptian companies are reportedly looking to invest USD 1.2 bn in SCZone green ammonia plant

More investment for Egypt’s burgeoning petrochemicals sector: A consortium of three Egyptian companies are considering investing USD 1.2 bn into the first phase of a plant in the Suez Canal Economic Zone (SCZone) to produce ammonia from green hydrogen, Asharq Business reports, citing people with knowledge of the matter.

Who’s investing? Asharq’s sources say the companies are Helwan Fertilizers, Abu Qir Fertilizers and the National Bank of Egypt subsidiary Al Ahly Capital Holding. The three firms established a joint venture called Misr Methanol and Petrochemicals (MMP) in 2021 to invest USD 1.6 bn in a methanol and ammonia plant.

More about the SCZone project: The plant will produce 1 mn tons of methanol and 400k tons of ammonia annually — a portion of which will be exported — in the SCZone’s Ain Sokhna site. Construction of the plant will break ground by the end of 2025 and will take three years to complete, the outlet reports.

Funding the ammonia production: The joint operation will turn to banks to provide 70% of the required investments, with the three shareholders providing the remaining 30%, the sources told Asharq, without detailing which banks could be in line to supply the funds. Asharq’s sources did not confirm if the investments will be made via MMP.