A flurry of fresh green hydrogen agreements for Egypt: European firms inked a spate of agreements with Egyptian counterparts during the two-day Egypt-EU Investment Conference that wrapped yesterday. Renewable energy and green hydrogen took center stage, unsurprisingly as the country’s ambitions to transform into a regional hub for green hydrogen production by 2026 and a global hub by 2030 are a focal point of President Abdel Fattah El Sisi’s third term. The country aims to produce 3.2 mn tons of green hydrogen per year by 2029 and 9.2 mn tons per year by 2040.

First, does Egypt have a fresh renewables target? Renewable energy will make up 58% of Egypt’s total energy mix by 2040, up from its current target of 42% by 2030, Reuters reports, citing comments made by Electricity Minister Mohamed Shaker at the Egypt-EU conference.

A GREEN HYDROGEN BONANZA-

#1- More from Infinity-Masdar-Hassan Allam: Our friends at renewables firm Infinity, Hassan Allam, UAE’s Masdar, and global energy giant BP will set up a USD 14 bn green hydrogen project in the Suez Canal Economic Zone, according to a statement. The project is currently in the feasibility studies phase and will be fully operational in ten years time, Infinity Chairman Mohamed Mansour told Enterprise.

#2- Deme heads to the Port of Gargoub: An international consortium led by Belgian energy firm Deme Group will set up a green hydrogen and green ammonia plant in the Port of Gargoub’s industrial zone after the firm inked an agreement with the New and Renewable Energy Authority (NREA) and the Alexandria Port Authority, according to separate statements here and here (pdf). The project will be carried out in three phases at a total cost of EUR 24 bn — the first phase will see the company pour investments of EUR 3 bn to produce 320k tons of green ammonia a year. “The wind and solar renewable power generation infrastructure will be located 70 km southwest of Gargoub and it will be connected to the production facility via a dedicated high-voltage power line,” the statement notes

#3- A USD 10 bn green ammonia project in East Port Said: The Sovereign Fund of Egypt (SFE and DAI Infrastructure signed a USD 10 bn agreement to set up a green ammonia project at East Port Said, DAI Infrastructure Vice Chairman Mourad Sami told Enterprise. Dubbed Ra, the project will include a USD 4.4 bn ammonia facility and a USD 5 bn renewable energy facility to power the ammonia plant, Sami added. Once fully operational, the East Port Said facility will have a production capacity of 2 mn tons per year and is expected to bring in USD 2 bn each year, Sami told us, adding that DAI will break ground on the project in Q1 2026.

Who else is on the project? Several European groups and financial institutions, including Greek shipping firm Naftomar — which will provide shipping services and take off some of the project’s production — are co-investors with DAI on the project, according to Sami. Sami confirmed to Enterprise that most of the funds will be secured from the US and Europe, with Allianz credit ins. subsidiary Euler Hermes providing export credit agency coverage.

#4- A EUR 7 bn plant by EDF + Zero Waste: France's EDF Renewables and Egyptian-Emirati firm Zero Waste will set up a EUR 7 bn three-phase green hydrogen and ammonia project near Hurghada at Ras Shoukair Port, according to a statement. The EUR 2 bn first phase of the project aims to produce 1 mn tons of green ammonia annually with the production earmarked to supply ships with green fuels and for exports. The project will also include the financing and development of a new 400 meter shipping dock and a seawater desalination unit to feed all stages of the project.

#5- A lot more green ammonia for Ain Sokhna: Abu Dhabi-headquartered Ocior Energy has inked a USD 4.3 bn agreement with the SFE to develop a green ammonia plant at the Port of Ain Sokhna, according to a statement. The plant will primarily cater to European markets, addressing the growing demand for sustainable ammonia.

And another USD 3.5 bn Taga Arabia-Voltalia project: A consortium of Taqa Arabia and France’s Voltalia will build a USD 3.5 bn green ammonia project at Ain Sokhna, under another agreement inked with SFE.

#6- Green ammonia production in Damietta: The Egyptian Petrochemical Holding Company and Misr Fertilizer Production Company (Mopco) are partnering with Norwegian firms Scatec and Yara International to set up a green ammonia plant in Damietta with initial investments of some USD 890 mn, according to a statement. The parties will produce around 150k tons of green ammonia annually in Mopco’s factories before selling it to Norway’s Yara. A seawater desalination plant and a maritime terminal will be set up to export the green ammonia with operations expected to begin in 2027.

WIND ALSO GOT A MENTION-

Danish wind turbine manufacturing giant Vestas wants to set up a USD 600 mn production facility in Egypt to manufacture wind turbines, according to a statement. The green energy company will soon start preparing a feasibility study for the project and begin drumming up financing.

Vestas is no stranger to Egypt’s renewables sector: The Danish company spearheaded a consortium that signed a EGP 4.3 bn agreement with the NREA back in 2020 to construct a 250 MW wind farm in the Gulf of Suez, which began a trial operation last November.

ON THE FINANCING FRONT-

#1- The European Investment Bank (EIB) and the EU have inked a EUR 271 mn agreement with the government to back the transition to a green economy, according to a statement. The agreement will channel EUR 135 mn in soft financing from the EIB, with an additional EUR 30 mn grant from the EU administered by the EIB. The remaining funds will come from the French Development Agency and other financiers, the statement reads.

The how: The project aims to assist Egypt in transitioning to a green economy by reducing industrial pollution and carbon emissions. It will focus on key industrial zones across the country, addressing air, water, and soil pollution. It will also support the use of renewable energy, green hydrogen, and biogas, and enhance sustainable industrial practices through energy efficiency, resource management, and circular economy interventions.

#2- CIB secures EBRD funding: The European Bank for Reconstruction and Development (EBRD) will provide CIB with USD 60 mn for on-lending to local women-led businesses and green investments, the lender said on its website.

The breakdown: Some USD 50 mn will fund investments in climate change mitigation and adaptation, namely businesses operating in “agribusiness, manufacturing and services, logistics and distribution, and information and communications technology.” The rest of the funding will target women-led businesses, with a focus on those with less than 250 employees and deriving annual revenues of less than EUR 50 mn.

#3- Egypt will also get a green hydrogen hub: Nile University and Green Hydrogen Organisation signed an agreement to establish a global green hydrogen hub. The hub aims to boost investment in green hydrogen and renewable energy projects.

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