Posted on 28 Nov 2024
Polish group Hynfra will set up a green hydrogen and ammonia production plant with a capacity of 100,000 tonnes/year in Egypt.
The company met with Egypt’s General Authority for Investment and Free Zones (GAFI) to discuss the project, which will require an initial investment of $1.6 billion, potentially rising to $10.6 billion to scale capacity to 1 million t/y of green ammonia.
Kallanish reports that the first phase of construction will be completed by 2030. The hydrogen and ammonia will be produced using locally sourced wind and solar energy.
The Egyptian facility is one of five plants that Hynfra plans to develop to supply green ammonia to Central and Eastern Europe. According to GAFI, Hydra has secured long-term export agreements for the feedstock.
“This facility would serve as an important element in the development of a coherent ammonia logistic system, designed to connect production plants and ammonia hubs across Europe, North Africa, and the Arabian Peninsula,” says Hynfra.
Earlier this year, Egypt approved a series of incentives for green hydrogen and derivatives projects, including a tax credit of between 33% and 55%, zero VAT on exports, and VAT exemption on equipment and machinery. The measure also applies to the upstream and midstream facilities whose output is 95% serving green hydrogen and derivatives projects.
Source:Kallanish
