EU Commits 147 Million Euros to Green Hydrogen and Grid Expansion Projects in Egypt

The European Union has announced a significant 147 million euro investment package to advance Egypt’s renewable energy infrastructure and green hydrogen capabilities. The European Commission unveiled two major projects totaling 124.3 million euros aimed at accelerating Egypt’s clean energy transition.

The funding allocation includes 34.3 million euros for the Sokhna Green Ammonia project and 90 million euros for Egypt’s Grid Modernisation and Expansion programme. These investments represent a strategic partnership between the EU and Egypt under the broader Pact for the Mediterranean framework.

The Sokhna Green Ammonia project will develop a 100MW electrolysis plant for hydrogen production at an ammonia facility in Ain Sokhna on the western shore of the Gulf of Suez. The project aims to produce green ammonia for export to European end users with initial output planned at 19500 tonnes annually ramping up to 40000 tonnes per year. The facility benefits from strategic positioning near industrial zones seawater desalination plants and direct access to Ain Sokhna port for shipping to Rotterdam.

Egypt’s Grid Modernisation and Expansion programme will help integrate 22GW of additional renewable capacity into the national grid by 2030 supporting the country’s clean energy targets. The programme focuses on increasing grid capacity to accommodate renewable energy sources and strengthen Egypt’s power infrastructure.

Commissioner for the Mediterranean Dubravka Šuica emphasized the region’s renewable energy potential stating that the Mediterranean has vast untapped renewable energy resources. The EU plans to launch T-MED under the Pact for the Mediterranean to support partners through investments that attract private funding and strengthen regional cooperation.

These projects form part of Egypt’s broader low-carbon hydrogen strategy positioning the country as a global renewable hydrogen hub. The investments align with Egypt’s Vision 2030 sustainable development goals leveraging the country’s abundant solar and wind resources.

The announcement was made during the Sustainable Energy Horizons in Egypt 2040 conference in Cairo attended by senior officials European partners international financial institutions and industry experts. The conference highlighted advanced contract negotiations for both the electricity transmission network modernization and the Egypt Green Hydrogen project.

The funding package represents continued European support for Egypt’s energy transition following previous successful initiatives including the world’s first renewable ammonia shipment delivered to India in November 2023. The T-MED initiative is expected to mobilize tens of billions of euros in private investment over the coming years through coordinated financing solutions involving international financial institutions development banks and private investors.

Egypt aims to produce between 1.5 million and 3.2 million tonnes of green hydrogen annually by 2030 depending on the development scenario with significant portions designated for export. The country’s strategic location and renewable energy resources position it as a key partner in Europe’s green energy transition and regional energy security objectives.