Singapore-based Destiny Energy plans to invest $210 million in establishing facilities to produce over 100,000 metric tons per year of green hydrogen and green ammonia at the Suez Canal Economic Zone. Vijay Sirse, Chief Executive Officer of Destiny Energy, announced the plans during a meeting with Hossam Heiba, Chief Executive Officer of the General Authority for Investment and Free Zones.
This strategy is expected to help reduce overall production costs for both Egyptian companies and the European Union, as energy can account for up to 70 percent of the costs associated with green ammonia production. Heiba affirmed the government’s support for clean energy projects, whether through investment incentives that can reimburse up to 55 percent of the project’s investment cost via tax deductions over seven years or by providing development financing opportunities.
Heiba noted that supplying local factories with green ammonia will lower the carbon footprint of exported products, which is crucial for meeting the EU’s Carbon Border Adjustment Mechanism requirements, thereby improving market access to Egypt’s key trading partner. The CBAM is an EU policy that places a carbon price on certain imported goods to prevent carbon leakage, requiring EU importers to buy certificates for the embedded carbon emissions of goods like cement, steel, aluminum, fertilizers, electricity, and hydrogen.
Source: egyptoil-gas.com