• The European Union signs €34.3 million grant to support the 100MW Egypt Green Hydrogen project in Ain Sokhna.
  • The project, led by Scatec, has secured a long-term offtake contract through the H2Global auction worth up to €397 million.
  • The initiative is part of a broader €124.3 million EU package to modernise Egypt’s grid and expand renewable energy capacity.

The European Union has formalised a €34.3 million grant agreement to accelerate the Egypt Green Hydrogen project in Ain Sokhna. Developed by Norwegian energy company Scatec ASA, the 100MW facility is the first to secure a long-term hydrogen off-taker contract via the initial H2Global auction, valued at up to €397 million.

The project is delivered by a consortium comprising Scatec ASA with a 52 percent stake, Fertiglobe, Orascom Construction, and the Sovereign Fund of Egypt. It features a 100MW electrolyser plant producing renewable hydrogen, which is subsequently converted into green ammonia for export. Renewable power for the facility comes from a combined 273MW of solar and wind energy, including 70MW of solar and 203MW of wind capacity. Partial production and initial exports began in late 2023, with a final investment decision for full-scale operations expected in the first half of 2025.

The grant was announced at the Future of Sustainable Energy in Egypt 2040 conference in Cairo and forms part of a larger €124.3 million EU package. This includes €90 million for the Egypt Grid Modernisation and Expansion programme, which aims to integrate 22GW of clean energy by 2030, alongside €34.3 million dedicated to fast-tracking the Sokhna green ammonia project.

These agreements strengthen the EU-Egypt Strategic and Comprehensive Partnership and the Pact for the Mediterranean, supporting Egypt’s ambition to become a regional green energy hub.

Author: Bryan Groenendaal