Egypt's sovereign wealth fund has finalized agreements totaling up to $33 billion with European developers for green ammonia projects, marking a significant move towards renewable energy expansion, according to a statement from the Egyptian cabinet.
The agreements include an $11 billion partnership with Frankfurt-based DAI Infrastruktur to establish a green ammonia project in East Port Said. Additionally, the Sovereign Fund of Egypt has teamed up with BP, UAE's Masdar, Egyptian company Hassan Allam Utilities, and Infinity Power to invest $14 billion in a green ammonia plant at Ain Sukhna Port on the western coast of the Gulf of Suez.
Egypt, the third-largest economy in the Arab world, is intensifying efforts in solar, wind, and green hydrogen projects amid declining natural gas production. The country aims to increase renewable energy's share of power generation to 42% by 2035, with plans to raise this target to 58% by 2040, as reported by Reuters.
These agreements were signed during the EU-Egypt Investment Conference held in the New Administrative Capital, east of Cairo. The conference brought together over 1,000 participants, including ministers, officials, and executives from various sectors of the EU and Egypt.
“We see Egypt as a stabilizing force in the entire region,” stated EU trade commissioner Valdis Dombrovskis, highlighting Egypt's strategic importance amidst regional challenges.
Egypt's economy has faced challenges, including high inflation and significant government debt, exacerbated by global disruptions such as the Russia-Ukraine conflict. However, Egypt secured an $8 billion loan package from the IMF in March, aimed at economic stabilization and reform.
“We count on the EU as our main strategic partner that will help Egypt to move ahead to achieve a stable and booming economy for the sake of the whole region,” affirmed Egypt's Prime Minister Mostafa Madbouly during the conference.
The EU stands as Egypt's largest trading partner, underscoring the economic ties between the two regions. EU Commission President Ursula von der Leyen noted Europe's substantial role in Egypt's foreign direct investments during her address at the conference.
