MOPCO to Finalize Green Hydrogen Production Project in Egypt by 2027

MOPCO to Finalize Green Hydrogen Production Project in Egypt by 2027

Alexander Hamilton 28-Nov-2024

Misr Fertilizers Production Company (MOPCO) in Egypt is set to complete two significant projects by the end of 2027, aimed at advancing its green hydrogen production capabilities, expanding its factory operations, and increasing urea production, as reported by Al Arabiya Business. The company’s green hydrogen initiative is a key part of its strategy to boost its production capacity and contribute to Egypt's green energy goals.

The green hydrogen project will involve the construction of a new production facility specifically designed for the green ammonia sector. This facility will be located at the existing Damietta Port area on Egypt’s eastern Mediterranean coast, where MOPCO’s current ammonia production plants are situated. The new facility will be built alongside MOPCO’s existing ammonia production lines, which include MOPCO 1, MOPCO 2, and MOPCO 3. The project is being driven by a consortium of companies, including MOPCO itself, Norway’s Scatec, and the Egyptian Petrochemicals Holding Company (ECHEM). The green hydrogen produced at this facility will be converted into green ammonia, which is a more sustainable alternative to conventional ammonia, contributing to a lower carbon footprint for MOPCO’s operations.

Once completed, the new green ammonia production facility is expected to have an annual output of 150,000 tons of green ammonia. The ammonia produced will then be exported through a pipeline connected to Damietta Port, further enhancing Egypt’s role as a key player in the global ammonia market. The green hydrogen production facility is part of a broader push by MOPCO to align its operations with global trends in sustainability and energy transition.

Alongside the green hydrogen project, MOPCO is also focused on expanding its urea production capabilities. The company plans to increase the capacity and efficiency of its urea manufacturing operations, which will also benefit the melamine industry under MOPCO’s umbrella. These factory upgrades are scheduled to be completed in the first half of 2027, and they are expected to enhance MOPCO’s overall production capacity, positioning the company for greater market share in both domestic and international markets.

The combined investment for both the green hydrogen production facility and the factory expansions is expected to reach nearly $400 million. MOPCO plays a pivotal role in Egypt’s fertilizer sector, accounting for approximately 30% of the country’s domestic urea demand and 60% of its ammonia needs. In addition to serving the local market, MOPCO is a significant exporter of urea, with European countries being the primary destination, followed by markets in the Americas and Asia.

MOPCO’s performance has been strong in 2024. In the first half of the year, the company met its urea production target of 943,000 tons and exceeded its ammonia sales target by 138%. Export projections for the year indicate that MOPCO will ship between 600,000 and 700,000 tons of urea, and with stable natural gas supplies, production and exports are expected to increase in 2025. These advancements and investments reflect MOPCO’s commitment to enhancing its production capabilities and expanding its footprint in both the domestic and global markets.

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