The partnership involves the General Authority for Red Sea Ports and the New and Renewable Energy Authority, collaborating with the Green Fuel Alliance. This alliance comprises the French firm EDF Renewables and the Egyptian/Emirati company Zero Waste.
The signing ceremony was a high-level affair, attended by
Lieutenant General Engineer Kamel El-Wazir, Egypt's Deputy Prime Minister for
Industrial Development and Minister of Industry and Transport, Dr. Mahmoud
Esmat, Minister of Electricity and Renewable Energy, and Éric Lombard, the
French Minister of Economy, Finance, Industrial and Digital Sovereignty.
The agreement was officially signed by Major General Mohamed
Abdel Rahim, Chairman of the General Authority for Red Sea Ports, Engineer Ihab
Ismail, Chairman of the New and Renewable Energy Authority, Amr El-Sawaf,
Chairman of Zero Waste, and Béatrice Buffon, Chairwoman of EDF Renewables.
Engineer Kamel El-Wazir emphasized that this contract aligns
with presidential directives to foster the local green hydrogen and derivatives
industry and create an attractive investment environment. This initiative is
expected to significantly bolster Egypt's position as a regional and global
energy and green fuel hub.
He further noted that this collaboration underscores the
strong bilateral ties between the leadership and people of both nations,
reflecting a mutual commitment to enhanced cooperation for shared benefits and
the prosperity of both countries. The project aims for a substantial annual
production of one million tons of green ammonia across three phases, commencing
in 2029. This output will support Egypt's objectives of providing clean fuel
for ships and exporting to international markets.
The Minister highlighted that this partnership strengthens
Egypt's role in renewable energy ventures and supports its transition to a
green economy. Notably, this project differs from others in Egypt as it
requires no state investment in infrastructure or reliance on national
electricity grid facilities for power transmission, and it imposes no financial
burdens on the government. He stressed that this is a unique, fully private
sector-led initiative requiring financially and technically robust companies
due to its long-term nature, with an expected investment recovery period of
around fifty years.
Minister El-Wazir pointed out the direct economic benefits,
including revenues for the state from service fees, licensing fees, and land
usage fees for wind and solar power plants and the green hydrogen and ammonia
production areas. Additionally, Egypt will benefit from export fees and various
taxes, all payable in US dollars.
He further highlighted the indirect benefits, particularly
the creation of numerous job opportunities during both the construction and
operational phases of the project.
The Minister elaborated that the EDF Renewables and Zero Waste alliance will inject an initial two billion euros in direct investment for the first phase, targeting an annual production of 300,000 tons of green ammonia. The total investment for all three phases is projected to reach seven billion euros for a total annual output of one million tons, entirely financed by the project company.