Leading Canadian clean-tech company, Borna Membrane Solutions (SCD) plans to invest $40 million to establish a facility to manufacture flare gas recovery systems, carbon separation technologies, and reinjection solutions for the Egyptian natural gas network.

This came during a meeting of the President of the General Authority for Investment and Free Zones (GAFI), Hossam Heiba, with a delegation from Borna to discuss localizing the company’s technology in Egypt, in alignment with the government’s strategy to reduce carbon emissions.

The company’s CEO, Sam Salimi Beni, noted that carbon captured and stored will allow local companies to benefit from trading carbon credits in Egypt’s voluntary carbon market, launched by the government in 2024. Beyond the market gains, the project is expected to reduce carbon emissions and Egypt’s energy imports and create jobs.

The Canadian government and financial institutions support companies seeking to inject new investments into the Egyptian market, considering it a market with tremendous growth opportunities, Beni added.

For his part, Heiba explained that Egypt’s private free zones system provides Borna key investment benefits, including customs and tax exemptions, simplified procedures, and easy access to land associated with production operations, particularly near exploration and extraction areas, without being bound by the locations of public free zones and investment zones.

Heiba noted that Borna’s eco-friendly technologies and machinery will contribute to reducing carbon emissions, thus helping Egyptian exporters meet the EU’s Carbon Border Adjustment Mechanism (CBAM), which requires businesses to report embedded carbon emissions in products entering Europe, thereby allowing lower-carbon goods to gain a competitive pricing advantage.