Egypt and France Sign Landmark €7 Billion Agreement for Green Hydrogen Facility on Red Sea Coast

TDT | Manama
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Egypt and France have signed a landmark €7 billion ($7.6 billion) agreement to establish one of the region’s largest green hydrogen and ammonia production facilities near Ras Shokeir on Egypt’s Red Sea coast. The deal marks a major step in Egypt’s ambitions to become a global hub for renewable energy and green fuel exports.

Signed during French President Emmanuel Macron’s official visit to Egypt, the agreement was a key highlight of the Franco-Egyptian Business Forum, which focused on enhancing bilateral cooperation in energy, infrastructure, and industry. The large-scale project will be developed in three phases and aims to begin production in 2029, eventually producing up to 1 million tonnes of green ammonia annually.

EDF Renewables and Zero Waste will spearhead the initiative in partnership with the General Authority for the Red Sea Ports and the New and Renewable Energy Authority of Egypt. The facility will be entirely funded and implemented by a private-sector consortium, with no financial burden or infrastructure demands on the Egyptian government.

Phase One: €2 Billion Investment, 300,000 Tonnes Output

The first phase of the project requires a direct investment of €2 billion and will target an initial output of 300,000 tonnes of green ammonia per year. In total, the investment across all phases will reach €7 billion, making it one of Egypt's most significant clean energy initiatives to date.

Egypt’s Deputy Prime Minister and Minister of Industry and Transport, Kamel El-Wazir, highlighted the project’s strategic importance. “This agreement aligns with our national vision to localize the green hydrogen industry and transition to a green economy. It positions Egypt as a regional and global leader in renewable energy while ensuring sustainable development and environmental protection,” he said.

Infrastructure and Local Development

To support the project, 368 square kilometers of land in Ras Shokeir have been allocated for solar and wind energy generation. An additional 1.2 million square meters will be used for the construction of the integrated industrial plant. The project also includes a 400-meter export jetty, a 7-kilometer transmission corridor, and a dedicated desalination plant to meet the facility’s water needs.

El-Wazir emphasized that the project will create thousands of job opportunities, with a target of 95% local employment. The consortium has committed to extensive training programs to ensure Egyptian talent is equipped to lead operations in the long term.

Economic and Environmental Impact

While fully privately funded, the state will benefit from licensing fees, land-use payments, export duties, and taxes—all of which will be paid in U.S. dollars. In addition to generating economic value, the project will contribute significantly to Egypt’s environmental commitments under the Paris Agreement and COP27 by reducing greenhouse gas emissions and promoting the use of sustainable alternatives to fossil fuels.

The facility will also support green fuel supply for ships passing through the Suez Canal and aid the development of a new Red Sea port under the Red Sea Ports Authority.

Strengthening Bilateral Ties

President Macron’s visit to Cairo underlined the growing economic partnership between Egypt and France. In addition to the green hydrogen deal, the two countries signed a €260 million loan agreement, further solidifying their strategic alliance and shared commitment to sustainable development.

This transformative hydrogen project not only strengthens Egypt’s renewable energy credentials but also showcases France’s role as a key partner in shaping a greener, more resilient future for the region.