• Four firms sign deal to study 500 MW green hydrogen hub in Alexandria

• Project targets large-scale green ammonia production using solar and wind

• Initiative aligns with Egypt’s goal to capture 8% of global hydrogen market

Egypt plans to strengthen its position in the global renewable energy sector through a major green hydrogen initiative. Abu Qir Fertilizers, Alexfert, Orascom Construction, and UEG announced in early April the signing of a memorandum of understanding to study the development of a green hydrogen hub in Alexandria.

The partners are currently conducting technical studies to integrate renewable energy solutions aimed at enabling large-scale, cost-competitive green hydrogen production, according to Ihab Mehawed, CEO of Orascom Construction.

The project includes feasibility studies based on a planned capacity of 500 MW. It will combine solar and wind power to support the production of around 480 tons of green ammonia per day.

UEG and Orascom Construction are leading the technical, commercial, and regulatory assessments, while Abu Qir and Alexfert are evaluating how green hydrogen could be integrated into their existing ammonia production facilities. The companies have not disclosed investment costs or a timeline. Final investment decisions will depend on the outcome of the feasibility studies.

The project fits into Egypt’s broader strategy to become a major player in green hydrogen. The country aims to capture about 8% of the global market, with long-term production targeted at 10 million tons per year, according to statements made by the petroleum minister in December 2025.

At COP27 in Sharm el-Sheikh, Egyptian authorities announced memorandums of understanding worth more than $83 billion for green hydrogen and ammonia projects. At the same time, the country is working to raise the share of renewables in its energy mix to 42% by 2030.

Abdoullah Diop