Cairo – Mubasher: TAQA Arabia and Voltalia have signed a framework agreement with the Egyptian government for the production of green ammonia, with a total investment that could reach up to $3.40 billion.

The project will be carried out in two identical phases, each featuring a 500-megawatt (MW) electrolyser powered by over 1.30 gigawatts (GW) of solar and wind energy, according to a press release.

Located at a greenfield site near Ain Sokhna port in the Suez Canal Economic Zone (SCZONE), the facility will have an annual production capacity exceeding 350,000 tonnes of hydrogen per phase.

Pakinam Kafafi, CEO of TAQA Arabia, said: “TAQA Arabia is committed to contribute in building the green economy in Egypt, in line with the state’s efforts. This commitment is reflected in a continuation to our operations through strategic partnerships with the most important players in the energy sector.”

Sebastien Clerc, CEO of Voltalia, stated: “This landmark project will contribute significantly to Egypt's transition to a green sustainable economy. The project will enhance Egypt energy security by becoming less reliant on fossils fuels and achieving sustainable development goals.”

Khaled Abubakr, Chairman of TAQA Arabia, commented: “The signing of the framework agreement today comes as one of the results of the efforts made by the state to stimulate investment in the field of green hydrogen and its derivatives, in line with the requirements of sustainable development and the state’s plans for economic and social development.”

The agreement was signed during the Egypt-EU Investment Conference 2024, which was held on 29 and 30 June in Cairo.

During the event, the Egyptian Red Sea Ports Authority (RSPA) and the New and Renewable Energy Authority (NREA) have signed an agreement with a consortium of France’s EDF Renewable and the Egyptian-Emirati company to produce green hydrogen and green ammonia near Ras Shoukair in Hurghada city.

In the first quarter (Q1) of 2024, TAQA Arabia’s consolidated net profit leapt to EGP 102.77 million from EGP 88.38 million in Q1-23.