Egyptian executive Pakinam Kafafi leads TAQA Arabia to $3.4-billion green ammonia deal

Timilehin Adejumobi -

Key Points:

  • TAQA Arabia, led by CEO Pakinam Kafafi, partners with Egypt and Voltalia for a $3.4-billion green ammonia project.
  • Project unveiled at Egypt-EU Investment Conference includes 500 MW electrolyzers powered by 1.30 GW renewables.
  • Located in SCZONE near Ain Sokhna port, aims to produce 350,000 tonnes of hydrogen annually, advancing Egypt’s green economy.

TAQA Arabia, a Cairo based energy distribution giant led by Egyptian executive Pakinam Kafafii, has partnered with the Egyptian government and Voltalia, a global renewable energy player, to embark on a green ammonia production project with a potential investment of $3.4 billion.

Unveiled at the Egypt-EU Investment Conference 2024 in Cairo, the agreement outlines a phased initiative involving a 500-megawatt (MW) electrolyzer in each phase, powered by over 1.30 gigawatts (GW) of solar and wind energy.

The facility, located near Ain Sokhna port in the Suez Canal Economic Zone (SCZONE), aims to produce over 350,000 tonnes of hydrogen annually per phase.

TAQA Arabia drives Egypt’s green economy

“TAQA Arabia is committed to advancing Egypt’s green economy in alignment with national initiatives,” said Pakinam Kafafi, CEO of TAQA Arabia. “Our dedication is underscored by ongoing operations and strategic partnerships with key energy sector players.”

“This transformative endeavor will significantly bolster Egypt’s shift towards a sustainable, green economy,” added Voltalia CEO Sebastien Clerc. “It promises to enhance energy security by reducing reliance on fossil fuels, aligning with sustainable development goals.”

Khaled Abubakr, Chairman of TAQA Arabia, emphasized, “Today’s framework agreement is a testament to the state’s proactive efforts to foster investment in green hydrogen and its derivatives, aligning with sustainable development imperatives and national economic strategies.”

TAQA Arabia’s growth strategy

As Egypt’s leading energy and utility provider, TAQA Arabia serves the daily energy needs of more than 1.7 million customers and specializes in developing and operating nationwide energy infrastructure.

Under Pakinam Kafafi’s leadership, the company has strategically expanded its market presence through acquisitions, integrating major gas distribution firms such as BG, ENI, Edison, and AMEC. This approach has propelled TAQA Arabia’s robust growth trajectory.

In Q1 2024, TAQA Arabia’s profit rose 16 percent year-on-year to EGP102.77 million ($2.17 million), from EGP88.38 million ($1.86 million) a year prior, highlighting the effectiveness of the company’s cost management strategies under Kafafi’s leadership.