GAFI and Hynfra collaborate for $1.6 billion green ammonia project in Egypt

Egypt’s General Authority for Investment and Free Zones (GAFI) has announced partnership with the Polish company Hynfra, Egypt for a green ammonia production facility with an initial CAPEX of a massive $1.6 billion. The objective of the initiative is to strengthen Egypt’s position as a renewable energy leader.

GAFI held that this collaboration was discussed during a meeting attended by Hossam Heiba, Tomoho Umeda (Founder and CEO of Hynfra) and the top Egyptian authorities.

Hynfra plans to build five green ammonia production facilities serving Central and Eastern Europe, with Egypt selected as a flagship location. The first phase of the facility, expected by 2030, will produce 400,000 tons of green ammonia annually. The project’s ultimate goal is to scale production to one million tons per year.

The plant will utilize Egypt’s rich renewable resources, such as solar and wind energy, to power the entire production process. Hynfra also intends to introduce cutting-edge technology in green hydrogen production, energy storage systems and water desalination to Egypt. Company’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 eco-friendly approach ensures zero reliance on fossil fuels.

The official statement held, “The entire output will be exported to the European Union under long-term agreements, positioning Egypt as a key player in EU’s strategy to secure sustainable energy supplies.”

Egypt’s President Hossam Heiba highlighted the country’s significant steps toward becoming a hub for green hydrogen and ammonia, including legislative measures like the Green Hydrogen Production Projects Incentives Law and the establishment of the National Council for Green Hydrogen. He also mentioned the “golden license” program, designed to streamline the approval process for strategic projects.

These efforts align with the European Union’s goal of importing 6 million tons of green hydrogen and 4 million tons of green ammonia by 2030.

During the discussions, various investment options and potential locations were presented, ensuring access to renewable energy and proximity to export ports. President Heiba assured Hynfra of comprehensive support from GAFI across all project phases, from permits to operational execution.