Last month, AEA Executive Vice-President Hans Vrijenhoef presented to a full house at the 29th AFA International Fertilizer Conference in Cairo, Egypt. Hans covered the challenging task of aligning the current & future ammonia certification tools being developed by various parties. There was also evidence of huge MENA momentum for clean ammonia at the event, both in Egypt and the wider region.
For our December episode of Ammonia Project Features, we welcomed Alzbeta Klein (International Fertilizer Association) and Tarek Hosny (Fertiglobe). Our speakers discussed a pathway forward for Egypt’s fertilizer industry to decarbonize, presented the newly-commissioned Egypt Green Hydrogen project, and outlined the unique advantages (and challenges) of developing renewable production projects in Egypt.
The European Commission has signed strategic partnerships with three countries at COP27: Namibia, Kazakhstan and Egypt. Key cooperation areas include boosting the rollout of renewable energy generation for hydrogen production, and European investment to finance renewable hydrogen production. Also in Sharm el-Sheikh, German Chancellor Olaf Scholtz announced the first tender process for H2Global will shortly commence, with a further €4 billion to be invested into the pay-for-difference initiative.
This week we explore three ammonia production announcements from Egypt at COP27. The “Egypt Green” integrated hydrogen plant has been commissioned in Ain Sokhna, and will shortly begin supplying renewable hydrogen to two nearby ammonia plants. AMEA Power has agreed to develop an 800,000 tonnes per year ammonia production project (also in Ain Sokhna), and Fortescue Future Industries will explore the feasibility of multiple renewable projects across the country.
The number of renewable hydrogen-based projects planned for the Suez Canal Economic Zone has now reached fifteen. Of the seven new MoUs signed in late August, four are targeting renewable ammonia production. Saudi-based alfanar, African energy developer Globeleq, Mediterranean Energy Partners and renewable energy developer Actis are all planning renewable ammonia production plants, with ACME Group also signing an MoU for a multi-million tonne renewable hydrogen plant in the SCZONE.
India-based ReNew Power and the SCZONE have signed an agreement to develop a new, $8 billion, million-tonne-per-year renewable ammonia production plant near Ain Sokhna in Egypt. The first phase, producing 100,000 tonnes per year of renewable ammonia, is targeted for completion between 2023 and 2025.
Total has signed a new MoU with the General Authority for Suez Canal Economic Zone (SCZONE) to develop a renewable ammonia project in Ain Sokhna, Egypt. The first phase targets production of 300,000 tonnes of renewable ammonia per year. SCZONE is now involved with six renewable hydrogen-based projects near the Suez Canal totaling more than $10 billion in investment, and featuring about 1.5 million tonnes of renewable ammonia production in the first phase (expanding to at least 6 million tonnes per year).
A series of new announcements illustrates the growing importance of Egypt, the Suez Gulf and the area designated the Suez Canal Economic Zone to the ammonia energy transition:
