Under the Mediterranean Green Hydrogen Hub banner, Egyptian fertiliser producers Abu Qir Fertilizers and Alexandria Fertilizers (Alexfert) and construction firm Orascom Construction have partnered with Hong Kong’s United Energy Group (UEG) to explore developing the facility.

Under a memorandum of understanding, UEG and Orascom will study the feasibility of deploying 500MW of wind and solar renewable power to produce green hydrogen, which Abu Qir and Alexfert will look to use in their existing ammonia production.

Abu Qir currently operates three ammonia plants exceeding 3,000 tonnes per day near Alexandria. AlexFert has one 1,200-tonne-per-day plant.

The group has said the green ammonia will comply with Europe’s renewable fuels of non-biological origin (RFNBO) rules. UEG’s General Manager Gu Xiaodong said it could support both “local industry and export markets.”

Egypt has been looking to establish itself as a major green molecule player in North Africa, using its low-cost renewables and proximity to high-demand Europe.

In March 2025. Egypt’s government unveiled plans for a 400,000 tonne-per-year green hydrogen plant in South Sinai worth $17bn.

More recently, in January 2026, a 100MW project, also involving Orascom and backed by the Sovereign Fund of Egypt, began “partial production”.

Under a deal with H2Global, the facility is contracted to supply a minimum of 397,000 tonnes of green ammonia to Europe between 2027 and 2033 at €1,000 ($1,169) per tonne.