The Egypt Green Hydrogen project in Ain Sokhna is expected to reach Final Investment Decision (FID) in the coming months, supported by long-term offtake agreements, Abu Dhabi-listed Fertiglobe said.
In its fourth-quarter 2025 results filing, the UAE-headquartered fertiliser producer said the H2Global auction award (secured in July 2024 and effective from 2027) provides “critical demand and pricing support” to help the Egypt Green Hydrogen consortium move towards FID.
The project, also referred to as Sokhna Green Ammonia and Ain Sokhna Green Ammonia, is being developed by a consortium led by Scatec, alongside Orascom Construction and The Sovereign Fund of Egypt (TSFE).
It comprises a 100 megawatt (MW) electrolyser facility that will produce renewable hydrogen to be used as feedstock for the production of up to 74,000 tonnes per annum of renewable ammonia at Fertiglobe’s existing ammonia facilities in Ain Sokhna.
Long-term offtake underpinning FID
In July 2024, Fertiglobe had signed a 20-year ammonia offtake agreement with Egypt Green Hydrogen after securing a green ammonia supply contract with Hintco under the first H2Global pilot auction for renewable ammonia.
The auction, funded by Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK), is designed to bridge the price gap between high production costs and market-ready prices, providing long-term revenue certainty for producers.
EU and EIB support
This week, the project also unlocked €34.3 million ($41 million) in concessional funding from the European Union and the European Investment Bank (EIB), further strengthening its financing.
Fertiglobe highlighted in its filing that the project benefits from limited capital expenditure [$19 million, according to its Capital Markets Day 2025 presentation] and targets double-digit internal rates of return (IRRs), as it leverages existing back-end ammonia infrastructure rather than developing a fully greenfield facility.
Egypt’s Daily News Egypt had reported last month that the project has commenced partial production of green ammonia and started exporting to Europe and the US.
Last week, a Zawya Projects report said Saudi-listed ACWA signed an agreement with Germany’s EnBW Energie Baden-Württemberg, Rostock Port, and VNG to create a green ammonia corridor from its Yanbu project to the Port of Rostock. The report said the project’s Front-End Engineering Design (FEED) for process plants is on schedule for completion by mid-2026.
(Writing by Anoop Menon; Editing by SA Kader)
(anoop.menon@lseg.com)
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