Energy company Petrofac will join an in-country subsidiary of Mediterranean Energy Partners (MEP) to undertake an early-stage feasibility study for a new green hydrogen to ammonia facility in Egypt.

With Petrofac taking charge of delivering the project, its scope encompasses the production of 125,000 tonnes of green ammonia per year for export at Ain Sokhna Port on the Gulf of Suez. 

Commenting on its green energy venture, Alex Haynes, Head of Business Development, New Energy Services, Petrofac, said, “This award builds on our growing track record in the new energy space and recent green hydrogen projects in Australia, the UK, and other global locations.” 

The production of green ammonia and other alternative sustainable fuels could become key to supporting an energy transition away from fossil fuels, in addition to helping diversify ammonia supply. 

Due to the ongoing conflict between Russia and Ukraine, trade flows of ammonia have been crippled, causing excess strain on the fertiliser supply chain resulting in unprecedented price spikes. 

Prices have also been affected by power outages in Trinidad, a nation that has traditionally supplied between 20-25% of globally traded ammonia. 

During gasworld’s Europe CO2 Summit 2022, Jennifer Willis-Jones, Fertiliser Week, said, “Ammonia prices are set to skyrocket further. There’s a lot of upwards pressure on ammonia prices at the moment.” 

“Limited relief could be available as Saudi Arabian mining giant Ma’aden launches the third Ras Al-Khair ammonia plant.”