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There’s another USD multi bn ammonia plant in the works, with Polish renewables player Hynfra announcing its plans to set up a USD 10.6 bn green ammonia facility in Egypt with production capacity of 1 mn tons per year, according to a statement from the General Authority for Investment (GAFI).
The first phase of the project is set to be up and running by 2030, which will cost some USD 1.6 bn and have a production capacity of 100k tons of green ammonia per year, Hynfra CEO Tomoho Umeda said during a meeting with GAFI boss Hossam Heiba.
The plant is part of Hynfra’s plan to build five green ammonia facilities to supply Eastern and Central Europe with their green ammonia needs, but it appears that this will be the only based in Egypt.
The ammonia produced will all be headed to Europe, with long-term offtake agreements already having been inked between Hynfra and players in the continent. The EU plans to import 4 mn tons of green ammonia and 6 mn tons of green hydrogen annually by 2030 to help meet its decarbonization targets.
But we may be getting some of the surplus electricity produced by the project, with the solar and wind sources used to power the factory set to also feed into the national grid “most days of the year,” according to the statement.
Hynfra plans to transfer technical expertise to Egypt, focusing on renewable energy storage, electrolysis technologies, and water desalination. GAFI will also provide support with licensing and project execution.
Sound smart: Green ammonia and green hydrogen are often spoken about as if they’re the same thing — but while they are closely linked, they each have different purposes and place in the production chain. Green hydrogen is in essence hydrogen produced using renewables, while green ammonia is ammonia made using green hydrogen. Although green hydrogen is great for powering industry, power plants, and fuel cells, it’s difficult to store and transport. This is where green ammonia comes in, as it can be easily turned into a liquid at low pressures and transported using relatively standard bits of infrastructure — making it an ideal candidate for a way to export renewable energy.
