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The country’s first green chemicals plant is officially under construction, after China’s Binhua Group — or Befar — broke ground on their USD 500 mn chlor-alkali production facility in the China-Egypt TEDA trade zone, according to a statement from the Suez Canal Economic Zone (SCZone). The big-ticket project is split between a USD 300 mn first phase — to be completed within 18 months — and a second USD 200 mn second phase.
Once fully up and running, the project will produce 100k tons via the chlor-alkali process a year and is expected to create 800 jobs.
The factory is good news for our import bill and localization efforts, given all the things we use the chlor-alkali process for. The chlor-alkali process uses electricity to break down saltwater into chlorine gas, hydrogen gas and sodium hydroxide — key chemicals used in numerous industries and everyday items. Chlorine is used to purify water and make plastics, sodium hydroxide can be used to make paper, soap, and textiles, while hydrogen is used in fertilizers, refining crude oil, and more.”From an economic standpoint, the project opens up wide prospects for downstream and complementary industries, while enhancing Egypt’s capacity to secure its needs for strategic products used across various vital sectors,” said SCZone head Walid Gamal El Din
But what makes the chemical production facility green? The project gets its green credentials by relying on solar power, wind energy, electricity, and natural gas for its energy needs. “The project is not merely a large industrial facility but a fully integrated system built upon the principles of environmental sustainability, utilizing diverse clean energy sources to power the production units. This represents an inspiring model for establishing a green chemical industry aligned with Egypt’s national vision for transitioning to a green economy,” said Gamal El Din.
Déjà vu? We first heard about the project when Befar inked a land usufruct agreement for the project during the Forum of China–Africa Cooperation held in Beijing back in September 2024.
