GAFI and Hynfra Collaborate on $1.6 Billion Green Ammonia Project in Egypt

Egypt’s General Authority for Investment and Free Zones (GAFI) has partnered with Polish company Hynfra to establish a $1.6 billion green ammonia production facility. This collaboration is a significant step towards making Egypt a key player in the global green energy market. The first phase of the facility, set to be operational by 2030, will produce 400,000 tonnes of green ammonia annually, with plans to eventually scale production to one million tonnes per year. The project will not only support Egypt's renewable energy goals but will also position the country as a major supplier of green ammonia to the European Union.

Hynfra, which aims to build five green ammonia plants across Central and Eastern Europe, has chosen Egypt as the flagship location for this project. The announcement was made during a meeting attended by several key stakeholders, including Hossam Heiba, Tomoho Umeda (Founder and CEO of Hynfra), Engineer Dr. Hussein El-Ghazawy (Hynfra’s Executive Partner in Egypt), and Ministerial Commercial Counselor Yehia El-Wathik Bellah, Head of the Trade Representation Authority. The facility will be powered entirely by renewable energy from Egypt’s abundant solar and wind resources. Any surplus electricity generated will be fed into the national grid, contributing to Egypt’s broader renewable energy objectives.

In addition to green ammonia production, Hynfra plans to introduce advanced technologies to Egypt, including green hydrogen production, energy storage systems, and water desalination. Hynfra’s green hydrogen production process involves water electrolysis to produce hydrogen, which is then combined with nitrogen under controlled conditions to create green ammonia. This process aligns with global efforts to reduce carbon emissions and support the transition to cleaner energy sources.

The ammonia produced at the facility will be exported to the European Union under long-term agreements, playing a crucial role in the EU’s strategy to secure sustainable energy supplies. President Heiba highlighted Egypt’s ongoing efforts to become a leading hub for green hydrogen and ammonia. These efforts include the implementation of the Green Hydrogen Production Projects Incentives Law and the establishment of the National Council for Green Hydrogen. The country’s ‘golden license’ program also aims to streamline the approval process for strategic projects, ensuring quick and efficient execution.

During the meeting, investment options and potential locations for the plant were discussed, with a focus on securing areas with access to renewable energy and proximity to export ports. This is in line with the EU’s goal of importing 6 million tonnes of green hydrogen and 4 million tonnes of green ammonia by 2030. President Heiba assured Hynfra that GAFI would provide full support throughout the project, from securing permits to ensuring operational success. This collaboration signals a significant leap toward sustainable energy development in both Egypt and Europe.