Henfra, a well-known Polish company, is planning to invest $1.6 billion in the construction of a green ammonia production plant in Egypt. The total investment is expected to reach $10.6 billion as the facility expands its capacity to produce one million tonnes annually.
During a recent meeting in Cairo, Henfra’s founder and CEO, Tomoho Omida, along with Egypt-based partner Hussein El-Ghazawy, met with Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), and Yehia El-Wathik Bellah, head of the Egyptian Commercial Service to discuss the project.
Henfra intends to construct five green ammonia plants to supply Eastern and Central Europe, with Egypt selected as the location for one of these facilities. The initial phase of the plant is expected to produce 100,000 tonnes per year and should be operational by 2030, with plans to increase production to one million tonnes annually.
The project will take advantage of Egypt’s abundant solar and wind energy resources, ensuring that the production of ammonia is powered entirely by clean energy. Henfra plans to build renewable energy plants with daily production capacities to meet the facility’s needs, with any excess electricity being fed into Egypt’s national grid to support the country’s renewable energy objectives.
In addition to producing green ammonia, Henfra will share technical expertise with Egypt in green hydrogen production, renewable energy storage systems, water desalination, and advanced electrolysis technologies.
The plant will generate green hydrogen through water electrolysis, which will then be combined with nitrogen at high temperatures to produce green ammonia. Each stage of the process will be powered by renewable energy, in line with global sustainability goals.
El-Ghazawy confirmed that all the output from the plant will be earmarked for export to the European Union, which has already secured long-term contracts with Henfra. The EU aims to import 6 million tonnes of green hydrogen and 4 million tonnes of green ammonia by 2030, positioning Egypt as a key player in the EU’s sustainable energy strategy.
Heiba emphasized Egypt’s dedication to the green hydrogen and ammonia sectors, citing recent legislative incentives and the establishment of the National Green Hydrogen Council. The government has also granted “golden licenses” to streamline approvals for projects in these sectors.
He also mentioned Egypt’s ongoing collaboration with European partners, including agreements worth over €67 billion signed during the Egypt-Europe Investment Forum earlier this year. These agreements are in line with Egypt’s Vision 2030 sustainable development strategy, focusing on renewable energy production and exports.
Heiba assured Henfra of full support throughout the project, from licensing to operations, to ensure the successful implementation of this transformative initiative.
This investment by Henfra not only highlights the company’s commitment to sustainable development but also strengthens Egypt’s position as a key player in the global green energy market. With a focus on renewable energy production and exports, this project is poised to make a significant impact on the country’s economy and environmental sustainability efforts.
