Abu Dhabi-based Fertiglobe said that its Egypt Green Hydrogen project in Ain Sokhna would go to Final Investment Decision (FID) in the next few months with the support of long-term offtake agreements.
In its fourth-quarter 2025 results filing, the fertiliser producer headquartered in the UAE stated that the H2Global auction award (awarded in July 2024 and coming into effect in 2027) offers a “critical demand and pricing support” to assist the Egypt Green Hydrogen consortium move towards FID.
It is a project named Sokhna Green Ammonia or Ain Sokhna Green Ammonia, which is being developed as a consortium by Scatec with the support of Orascom Construction and The Sovereign Fund of Egypt (TSFE).
It will include a 100-megawatt (MW) electrolyser plant, which will generate renewable hydrogen, which will then be utilized as a feedstock to produce up to 74,000 tonnes per annum of renewable ammonia at Fertiglobe’s existing ammonia facilities in Ain Sokhna.
Fertiglabe signed a 20-year ammonia offtake deal with Egypt Green Hydrogen in July 2024, following a green ammonia supply contract with Hintco under the first H2Global pilot auction of renewable ammonia.
The auction, which is financed by the Federal Ministry of Economic Affairs and Climate Action (BMWK) of Germany, will help close the price gap between high production costs and market-ready prices, giving producers long-term revenue certainty for producers.
The project also unlocked €34.3 million ($41 million) in concessional funding from the European Union this week and the European Investment Bank (EIB), further strengthening its financing.
Fertiglabe emphasized in its disclosure that the project has low capital investment [19 million, based on its Capital Markets Day 2025 presentation], and has a double-digit internal rate of return (IRRs), as it uses the existing back-end ammonia infrastructure instead of building a full greenfield plant.
Egypt’s Daily News Egypt had reported last month that the project has started the partial production of green ammonia and has started exporting to Europe and the US.
A Zawya Projects report last week reported that Saudi-listed ACWA had agreed with Germany-based EnBW Energie Baden-Wurttemberg, Rostock Port, and VNG on developing a green ammonia corridor through its Yanbu project to the Port of Rostock.
The report indicated that the Front-End Engineering Design (FEED) of the process plants of the project is expected to be completed by mid-2026.
