Egypt extends ACWA Power MoU for 500 kt green ammonia project

Egypt’s National Council for Green Hydrogen has approved a one-year extension of its memorandum of understanding (MoU) with Saudi Arabia’s ACWA Power for the development of the planned East Nile project, which is set to produce 66 kt of green hydrogen and 500 kt of green ammonia. The extension is intended to give the project partners further time to move development work forward and reinforce their cooperation towards setting up large-scale clean fuel production facilities in Egypt.

The Council has also approved a land allocation request submitted by Indian company Acure, granting it a 12 km² plot in West Zaafarana to build a 600 MW solar power plant. The facility will provide electricity for the pilot phase of Acure’s green ammonia project, which targets an initial production capacity of 100 kt/year, with plans to progressively increase total capacity to 1 Mt/year.

These decisions are part of Egypt’s ongoing efforts to scale up its renewable energy capacity and strengthen its position as a major international hub for green hydrogen and ammonia.

In 2024, the Council approved the low-carbon hydrogen strategy targeting an 8% share of the global hydrogen market by 2040. The strategy aims to reach hydrogen production of 1.5 Mt in 2030 and 5.7 Mt in 2040, mainly for the export market.

As part of the Green Hydrogen Incentives Law, Egypt unveiled several tax incentives for new green hydrogen production projects, their derivatives and for the expansion of existing projects. The measures include tax credits of between 33% and 55% of the tax payable on revenues generated from the production of green hydrogen and total exemptions from VAT for equipment, vehicles and raw materials used in the production of green hydrogen (Enerdata Global Energy Research).