Following last year’s memorandum of understanding (MoU) with Suez Canal Economic Zone (SCZONE), German company DAI Infrastruktur has now joined forces with compatriot technology major Siemens Energy to develop its green ammonia project in East Port Said, Egypt.
On October 30, 2023, DAI signed an MoU with Siemens Energy to collaborate on the production of green hydrogen from renewable power in East Port Said. Under the MoU, Siemens Energy will supply electrolyzers, auxiliary plant systems, and critical equipment making up the hydrogen island.
The two companies will also collaborate on engineering services during the project development.
DAI’s project named Ra is planned to have a total production capacity of 2 million tons per annum (mtpa) of green ammonia, with an estimated start in 2028.
The green ammonia is intended to be sold to German and predominantly European off-takers. The bulk of the produced green ammonia will be used in the maritime sector as fuel.
DAI has already signed agreements with UK-based Freepan Holdings and Greek Naftomar Shipping and Trading for ammonia offtake from the project Ra.
The plant’s location next to the Suez Canal and within the perimeters of the harbor in East Port Said, Egypt is also expected to ensure bunkering services for the green ammonia-fueled vessels that pass the Suez Canal.
“DAI Infrastruktur is strongly committed to developing East Port Said to be one of the biggest green ammonia hubs in the East Mediterranean. The location of the plant and it’s perfect access to the sea will help the maritime industry in bunkering their vessels as well as shipping the valuable green ammonia to off-takers within Europe”, said Ioannis Papassavvas from DAI.
The project is one of seven projects for which MoUs were signed on December 7, 2022, with Egyptian authorities as part of efforts to position the country as the regional center for green fuel production.