The African Development Bank Group (AfDB) plans to provide Egypt with a $3.55 million grant for the Ra green ammonia project in East Port Said. The funding comes under the bank’s Africa Green Hydrogen Program, which aims to attract private investment and support the development of hydrogen infrastructure.
The grant forms part of $20 million in reimbursable grants that the AfDB is allocating to four green hydrogen and derivatives projects in Egypt, Morocco, Namibia, and South Africa. The bank said the funding will help prepare the projects for investment.
Germany’s DAI Infrastruktur GmbH, working with Freepan Holdings, is leading the development of Project Ra across an area of about 780 square kilometers. The project targets annual production of 2 million tonnes of green ammonia, with commissioning expected in the second half of 2028.
DAI Infrastruktur said the AfDB funding will help move Project Ra into its next stages of development as the project works towards a Final Investment Decision (FID) and financial close.
The developers are positioning Project Ra as an integrated renewable hydrogen and derivatives platform. It will use Egypt’s renewable energy resources to produce hydrogen-based products for international and European markets, including the emerging market for renewable fuels for shipping.
The Sustainable Energy Fund for Africa (SEFA) will provide the funding, subject to approval by the AfDB’s Board of Directors. The grant will support the preparation of the projects and help bring them closer to investment.
Daniel Schroth, AfDB Group Director for Renewable Energy and Energy Efficiency, said Africa’s renewable energy resources could support the continent’s participation in the growing global green hydrogen and derivatives market.
The program also aims to support local economic development by expanding access to desalinated water and electricity through the use of surplus renewable power. It is expected to support industrial activity, increase export revenues, create jobs and promote the transfer of technology, knowledge, and skills.
source:https://egyptoil-gas.com
African Energy Council