Egypt and the European Union Sign €124 Million Deal to Modernize Grid and Boost Green Ammonia

Egypt and the European Union have strengthened their energy partnership by signing two grant agreements worth more than €124 million. The agreements were finalized during the “Egypt’s Sustainable Energy Outlook 2040” conference held in Cairo. The funding aims to modernize Egypt’s power sector and support the country’s transition toward a cleaner and more sustainable energy system.

A major share of the funding, €90 million, will support the Egypt Grid Modernization and Expansion program. The grant will be managed by the European Investment Bank. The program focuses on upgrading Egypt’s national electricity network so it can handle a larger share of renewable energy. Egypt plans to add around 22 gigawatts of clean energy capacity to its grid as part of its 2030 renewable energy targets. Officials say that strengthening the grid is essential to ensure a stable electricity supply while reducing dependence on fossil fuels. A modern grid will also help improve efficiency and reduce power losses across the system.

In addition to grid improvements, €34.3 million has been allocated for the Sokhna Green Ammonia project. The project is led by Norwegian renewable energy company Scatec. It focuses on producing green hydrogen and converting it into green ammonia using renewable power. Green ammonia is considered an important clean fuel for global markets. The project supports Egypt’s ambition to become a regional hub for clean energy exports. It is also expected to strengthen the local industrial sector by building technical expertise in advanced clean energy technologies.

Officials from both Egypt and the European Union said the projects fall under a broader Strategic and Comprehensive Partnership launched in 2024. The cooperation is part of the Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative, known as T-MED. The initiative aims to boost private sector investment, enhance regional energy security, and encourage cross-border clean energy trade. Leaders highlighted that increasing locally produced renewable energy will protect Egypt’s economy from global fuel price volatility.

Egypt’s Minister of Planning and Economic Development said the investments are important for long-term economic growth and competitiveness. By working closely with international partners and using technical support, Egypt is positioning itself as a key energy player in the Eastern Mediterranean region. The new agreements reflect a shared commitment to innovation, sustainability, and energy security. Both sides expressed confidence that the partnership will contribute to a cleaner and more stable energy future for Egypt and the wider Mediterranean region.