Egypt, France sign €7B deal to build green hydrogen complex in Ras Shukheir
Updated 4/8/2025 9:34:00 AM
Arab Finance: Egypt and France signed a cooperation agreement to develop, finance, construct, and operate an integrated green hydrogen and ammonia production facility in Ras Shukheir, as per a statement.
The agreement was signed between the Red Sea Ports Authority and the New and Renewable Energy Authority (NREA) in partnership with the Green Fuel Alliance, comprising France’s EDF Renewables and the Egyptian-Emirati firm Zero Waste.
As part of French President Emmanuel Macron’s official visit to Cairo, the signing was witnessed by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, Minister of Electricity Mahmoud Esmat, and French Minister of Economy and Finance Eric Lombard.
El-Wazir said the agreement supports Egypt’s presidential directives to localize the green hydrogen industry, attract foreign direct investment, and position the country as a regional and global hub for energy and green fuels.
He described the project as a reflection of the strong political and economic ties between Egypt and France and their mutual interest in long-term cooperation.
The facility is set to produce 1 million tons of green ammonia annually in three phases, beginning in 2029, to supply clean ship fuel and for export to global markets.
El-Wazir stressed that the project will not impose any financial burden on the state, nor will it require infrastructure support or electricity transmission from state-owned companies.
The fully private sector-led initiative will be carried out by companies with the financial and technical capacity to sustain long-term investment, expected to extend over 50 years.
The first phase of the project will involve a direct investment of €2 billion from EDF Renewables and Zero Waste to produce 300,000 tons of green ammonia annually.
The total investment for all three phases will reach €7 billion, with full financing by the project company.
The land allocated includes 368 square kilometers for wind and solar energy production and 1.2 million suqare meters for the plant itself. The project will also include a seawater desalination unit and a 7-kilometer electricity transmission corridor.
The company will build and fund a 400-meter-long loading dock with a 17-meter draft at the Red Sea Ports Authority, along with supporting infrastructure.
El-Wazir said the project will generate revenue for the state through land-use fees, licensing and renewal charges, export fees, service charges, and taxes, all paid in foreign currency.
It will also create thousands of jobs during construction and operation.
He noted that the agreement includes provisions for training Egyptian workers, with the aim of achieving a 95% local workforce participation.
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