The African Development Bank Group (AfDB) will provide a $3.55 million grant to Egypt for the “Ra” project for green ammonia production in East Port Said, as part of the bank’s Africa Green Hydrogen Program, which aims to catalyze private sector participation in the hydrogen infrastructure by promoting foreign direct investment (FDI).
The aid comes within the framework of the $20 million reimbursable grants the bank is providing to support four green hydrogen and derivatives projects in Egypt, Morocco, Namibia and South Africa, according to a statement by the African Development Bank Group.
Ra project, spanning an area of 780 square kilometers (km²), is being developed primarily by Germany’s DAI Infrastruktur GmbH in cooperation with Freepan Holdings and is expected to produce two million tons of green ammonia per year (mmt/y), with commissioning anticipated in the second half (H2) of 2028.
DAI Infrastruktur GmbH commented on the banks’ grant as an important step towards advancing Project Ra through the next stages of development and towards Final Investment Decision (FID) and financial close.
Project Ra is being developed as an integrated renewable hydrogen and derivatives platform designed to connect Egypt’s renewable energy potential with international and European markets, including the emerging market for renewable maritime fuels, said DAI Infrastruktur GmbH on its LinkedIn account.
Pending approval by the Bank’s Board of Directors, the Sustainable Energy Fund for Africa (SEFA) will provide the funding, which is intended to prepare projects for investment.
“Africa’s exceptional renewable energy resources give the continent a unique opportunity to become a competitive player in the emerging global green hydrogen and derivatives market,” said Daniel Schroth, Bank Group Director for Renewable and Energy Efficiency.
The program will also drive local socio-economic development by increasing access to desalinated potable water and electricity by harnessing surplus generation. It will also advance industrial development, export revenue generation, and the transfer of knowledge, technology, and skills, as well as job creation.
