Singapore-based Destiny Energy plans to invest $210 million in establishing facilities to produce over 100,000 metric tons per year (mt/y) of green hydrogen and green ammonia at the Suez Canal Economic Zone (SCZONE).

Vijay Sirse, Chief Executive Officer (CEO) of Destiny Energy, announced the plans during a meeting with Hossam Heiba, Chief Executive Officer (CEO) of the General Authority for Investment and Free Zones (GAFI).

This strategy is expected to help reduce overall production costs for both Egyptian companies and the European Union (EU), as energy can account for up to 70% of the costs associated with green ammonia production.

Heiba affirmed the government’s support for clean energy projects, whether through investment incentives that can reimburse up to 55% of the project’s investment cost via tax deductions for companies over seven years or by providing development financing opportunities via the national platform of the Egypt Nexus of Water, Food, and Energy (NWFE) program.

Heiba also noted that supplying local factories with green ammonia will lower the carbon footprint of exported products. This move is crucial for meeting the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements, thereby improving market access to Egypt’s key trading partner.

The CBAM is an EU policy that places a carbon price on certain imported goods to prevent carbon leakage. It requires EU importers to buy certificates for the embedded carbon emissions of goods like cement, steel, aluminum, fertilizers, electricity, and hydrogen.