Egypt and France have signed a €7bn agreement to develop a green hydrogen and ammonia complex near Ras Shokeir on the Red Sea coast, Arab News reports.

It will be financed and built by a private sector consortium led by French utility EDF and UAE-based Zero Waste, in partnership with the General Authority for the Red Sea Ports and the New and Renewable Energy Authority.

The complex is expected to produce up to 1 million tonnes of green ammonia a year, starting in 2029.

The first €2bn phase will create the capacity to produce 300,000 tonnes of green ammonia a year.

Around 368 sq km of land in Ras Shokeir has been allocated for the solar and wind farms needed to power the facility, and 1.2 million sq m will be used for the industrial plant.

The project also includes a 400m-long jetty with a 17mdraft, and a 7km transmission corridor. A dedicated seawater desalination unit will supply the project’s water needs.