On the sidelines of the Egypt-EU Joint Investment Conference held in Cairo during the 29th and 30th of June, Prime Minister Mostafa Madbouly has witnessed the signing of a project agreement for the production of green ammonia in the city of Damietta.

The agreement includes the Egyptian Petrochemicals Holding Company (ECHEM), Misr Fertilizers Production Company (MOPCO), along with the Norwegian companies SCATEC and Yara International.

The signing was attended by Minister of Petroleum and Mineral Resources Tarek El Molla, Minister of Electricity and Renewable Energy Mohamed Shaker, Minister of Planning and Economic Development Hala Elsaid, and Minister of International Cooperation Rania Al Mashat.

On the sidelines of the signing, El Molla confirmed that the agreement reflects confidence in the project and the investment climate in Egypt, pointing out that the initial investment cost of the project is estimated at approximately $890 million, with a production capacity of up to 150,000 tons of green ammonia annually.

El Molla noted that the project aims to generate renewable energy with a total capacity of up to 480 megawatts of renewable energy from wind and solar energy.

Moreover, El Molla explained that the project aims to produce green ammonia using the production capacities available at MOPCO, pointing out that the main contract terms and conditions guarantee success in securing a buyer for the green ammonia that will be produced from the project, which is the Norwegian company Yara.

El Molla added that the scope of the project’s work also includes the establishment of a seawater desalination plant, and a sea pier to export green ammonia from the port of Damietta, and it is expected to start operating in 2027.

For his part, Shaker stated that the project comes within the framework of implementing the Egyptian energy sector strategy, which aims to enhance the state’s capabilities in the field of using new and renewable energy sources, and reduce carbon emissions, by reducing dependence on traditional energy sources.

Shaker added that the project aims to deepen the local production of green ammonia, and is in line with the efforts made by the state to transform Egypt into a center for green hydrogen.