Siemens Energy and DAI Join Forces for Green Ammonia Project in Egypt

On October 30, 2023, DAI took a significant step towards green energy innovation by signing a Memorandum of Understanding (MoU) with Siemens Energy. This collaborative agreement is aimed at harnessing renewable power in East Port Said for the production of green hydrogen. Siemens Energy will play a pivotal role in this endeavor by providing electrolyzers, essential auxiliary plant systems, and critical equipment that will constitute the hydrogen island.

In addition to the supply of technology and equipment, DAI and Siemens Energy will engage in collaborative engineering services throughout the project's development. The synergy between the two companies is expected to drive forward the ambitious green energy initiative.

DAI's visionary project, aptly named "Ra," is poised to become a leading player in the green ammonia landscape. The project is designed to achieve a remarkable total production capacity of 2 million tons per annum (mtpa) of green ammonia. It is scheduled to commence operations in the year 2028, marking a significant milestone in the transition towards sustainable energy solutions.

The primary destination for the green ammonia produced by Project Ra is the German and predominantly European markets. This eco-friendly ammonia will find applications, primarily in the maritime sector as an alternative and sustainable fuel source. DAI has already secured agreements with prominent entities, such as the UK-based Freepan Holdings and Greek Naftomar Shipping and Trading, for the offtake of ammonia produced by Project Ra. These partnerships demonstrate the growing interest and demand for sustainable, green ammonia in the market.

The strategic location of the plant in East Port Said, Egypt, adjacent to the Suez Canal and within the harbor's confines, serves a dual purpose. It not only offers logistical advantages but also positions the facility to provide bunkering services for vessels powered by green ammonia. This is especially crucial for ships transiting through the Suez Canal, creating a seamless infrastructure for the adoption of green ammonia as a maritime fuel.

Ioannis Papassavvas from DAI emphasized the company's dedication to transforming East Port Said into a prominent hub for green ammonia production in the East Mediterranean. The project's strategic location and its easy access to the sea are expected to facilitate the maritime industry in both bunkering vessels and transporting valuable green ammonia to off-takers in Europe.

This initiative is part of a broader effort to advance Egypt's position as a regional hub for the production of green fuels. In fact, the project is one of seven that were the subject of MoUs signed with Egyptian authorities on December 7, 2022. These agreements underscore the commitment to fostering sustainable and green energy solutions and positioning Egypt as a central player in this vital sector.