The Polish company Hynfra is studying the establishment of a green ammonia production plant in Egypt, with an initial investment of $1.6 billion and an initial production capacity of 100,000 tons annually.

Hynfra intends to build five plants to meet the green ammonia needs of Eastern and Central Europe, selecting Egypt as the site for one of these plants. The initial phase is expected to be completed by 2030, with a production capacity of 100,000 tons per year, and potential expansion to produce up to 1 million tons annually.

The company will rely entirely on Egypt’s renewable energy resources to ensure green ammonia production is fully powered by clean energy. The daily energy generation capacity of the company’s planned power stations will exceed the factory’s needs, allowing surplus electricity to be supplied to Egypt’s national grid on most days, supporting the government’s efforts to increase reliance on renewable energy.

This came during a meeting between CEO of the General Authority for Investment and Free Zones (GAFI), Hossam Heiba, and founder and CEO of Hynfra, and Hussein El-Ghazawy, the company’s executive partner in Egypt, to discuss plans for the green ammonia plant.

Umeda noted that Hynfra will transfer its technological expertise to the Egyptian market, focusing on green hydrogen and ammonia production, renewable energy storage systems, electrolyzer technologies, and water desalination.

The company aims to produce green hydrogen through water electrolysis, which will then be used to produce green ammonia by reacting hydrogen with nitrogen under high temperatures, all powered by renewable energy sources.

Hussein El-Ghazawy, Hynfra’s executive partner in Egypt, stated that the project’s initial investment of $1.6 billion in foreign direct investment could reach $10.6 billion as production capacity scales up to 1 million tons of green ammonia annually.

 Heiba emphasized Egypt’s strong focus on the green hydrogen and ammonia sectors. The country has introduced a law to incentivize green hydrogen projects, established the National Green Hydrogen Council, and issued golden licenses to several green hydrogen and ammonia initiatives, simplifying all required approvals for project establishment.

He highlighted the Egypt-European Investment Conference held earlier this year, where agreements and memoranda of understanding worth over €67 billion were signed with European governments and companies.

The European Union aims to import 6 million tons of green hydrogen and 4 million tons of green ammonia by 2030.