The African Development Bank has approved a $3.55m reimbursable grant for Egypt's Project Ra, a significant green ammonia scheme in East Port Said. This move marks a substantial step forward for Egypt's green ammonia ambitions and signals progress towards a $23bn regional green hydrogen pipeline. The grant will be channeled through the Sustainable Energy Fund for Africa, a multi-donor fund managed by the African Development Bank.
Project Ra is one of four flagship projects selected under the Africa Green Hydrogen Programme, which aims to attract foreign direct investment into hydrogen infrastructure. The programme involves four countries: Egypt, Morocco, Namibia, and South Africa, with a combined $20m in reimbursable grants linked to an estimated $23bn in planned investments. The grant will be used for pre-investment work, advisory support, and preparation for final investment decision and financial close.
The African Development Bank's hydrogen programme is expected to catalyze private capital into hydrogen production, ammonia, and derivatives, as well as associated transmission and export facilities across the continent. The four projects represent around 20GW of planned solar and wind capacity, 7GW of electrolysers, and 2,950MWh of battery storage. This development signals a significant shift from concept to bankable pipeline for Africa's early utility-scale hydrogen projects.
Project Ra, sponsored by Germany's DAI Infrastruktur GmbH in partnership with Freepan Holdings, is expected to produce about 2m tonnes of green ammonia per year. The project site covers approximately 780km², and commissioning is targeted for the second half of 2028. The project is being developed as an integrated renewable hydrogen and derivatives platform, tying dedicated renewables to electrolysers and downstream ammonia aimed at international markets.
Egypt's location on the Suez Canal corridor is a key commercial advantage for Project Ra, which is designed to serve European and global buyers, including emerging demand for renewable maritime fuels. The export focus aligns with the Africa Green Hydrogen Programme's goal to secure long-term offtake from industrial and transport buyers. This development is expected to contribute significantly to Egypt's clean energy ambitions.
The African Development Bank's concessional grants play a crucial role in bridging the gap between ambition and investable reality for Africa's early utility-scale hydrogen projects. The bank's support for Project Ra and other initiatives under the Africa Green Hydrogen Programme is expected to have a positive impact on the continent's hydrogen production and export capabilities.
The approval of the $3.55m grant for Project Ra is a significant milestone for Egypt's green ammonia ambitions. With the African Development Bank's support, Project Ra is poised to become a major player in the global green ammonia market, contributing to a more sustainable and environmentally friendly energy future.
Key points
- The African Development Bank approves a $3.55m grant for Egypt's Project Ra, a major green ammonia initiative in East Port Said.
- Project Ra is expected to produce about 2m tonnes of green ammonia per year, with commissioning targeted for the second half of 2028.
- The Africa Green Hydrogen Programme aims to attract $23bn in planned investments, with a focus on hydrogen production, ammonia, and derivatives across the continent.
