Egypt and the European Union (EU) have signed a grant agreement worth €90 million that will be managed by the European Investment Bank (EIB) to enhance investments in the electricity grid in Egypt and develop renewable energy capabilities. In addition, a separate €35 million grant agreement was signed for Norway’s Scatec to support its green ammonia project in Ain Sokhna, according to the Cabinet’s statement.
Signed on February 10 during the Egypt Sustainable Energy Outlook 2040 Conference in Cairo, these agreements underscore the deepening partnership between Egypt and the EU. Rooted in a collaboration established at COP27, this framework accelerates the development of Egypt’s green hydrogen and green ammonia value chains through a combination of policy support, technical assistance, and large-scale investment mobilization.
The deals are also built under the pact for the Mediterranean and Trans-Mediterranean Renewable Energy Development (T-MED) initiative. The Pact for the Mediterranean, launched by the European Commission and the and the EU High Representative in October 2025, offers the overarching framework to promote renewable energy and clean tech cooperation, grounded in shared ownership and responsibility. In addition, T-MED initiative, as one of the Pact’s central pillars, provides a means of turning political commitment into concrete action across the Mediterranean, linking Europe with the Middle East and North Africa region.
Scatec, a leading renewable energy solutions provider, has been making headlines with its expansion in Egypt in the last period in renewable energy and green hydrogen projects.
In 2021, the company agreed with Fertiglobe and Orascom Construction to develop a 100 megawatt (MW) electrolyser facility in Ain Sokhna. The hydrogen produced is intended as feedstock for renewable ammonia at Fertiglobe’s existing plant. The project is designed to be powered by about 270 MW of solar and wind capacity, with an output of roughly 13,000 tons per year (t/y) of renewable hydrogen, which can be converted into up to 74,000 t/y of renewable ammonia. Recently, the project began partial production and started exporting to European and US markets.
