The “Egypt Green Hydrogen” project in SCZONE wins a contract worth € 397 million to export green fuel to Europe
The Suez Canal Economic ZONE (SCZONE) confirmed the success of the “Egypt Green Hydrogen” project in Sokhna integrated industrial zone in winning a contract worth 397 million euros within the H2Global auction to supply renewable ammonia to the European Union, where renewable ammonia supplies from Egypt will be provided at one thousand euros per ton until 2033, which will be produced based on the use of green hydrogen.
The H2Global pilot auction is funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). According to the contract, Quantities of renewable ammonia are being supplied starting from a potential level of up to 19,500 tons in 2027, with the possibility of increasing quantities in total to the level of up to 397,000 tons by 2033 based on a price of one thousand euros per ton. The contract has been decided because of the project “Egypt Green Hydrogen”, which is located in SCZONE and was established by “Fertiglobe”, “Scatec ASA”, “Orascom Construction”, and the Sovereign Fund of Egypt.
The project guarantees the supply of green hydrogen necessary for renewable ammonia production throughout the contract period. Egypt’s unique location and proximity to Europe also contributed to adding a competitive advantage to the “Egypt Green Hydrogen” project, which in return helped enhance Egypt’s capabilities in producing green hydrogen and green ammonia.
The “Egypt Green Hydrogen” project was inaugurated during “COP27” hosted by Egypt in Sharm El-Sheikh in November 2022, at an investment cost amounting to $417 million. The project succeeded, through its pilot production, in exporting the first green ammonia shipment in the world in November 2023 to India. SCZONE succeeded in August 2023 in hosting the first ship bunkering operation with green fuel in the Eastern Mediterranean and Africa as part of its efforts to support the use of green fuel in maritime activities in addition to its production. SCZONE also seeks to encourage investors in its industrial zones to use green fuel in manufacturing operations to obtain green products. All these efforts qualified it to be awarded the Sustainable Development Goals Model Partnership Certificate for Economic Zones “SDG Model Zone Partner” from the Global Alliance of Special Economic Zones “GASEZ”.
