The Egyptian government has approved China Energy’s application to build a $5.1 billion (£4.2bn) in the country.
At the end of last year, China Energy signed an agreement to investigate green hydrogen production in the Suez Canal Economic Zone – and will now develop the project in two stages.
A wind farm and solar park will be built to generate the hydrogen without carbon emissions, as well as an ammonia synthesis facility.
China Energy estimates that around 140,000 tonnes of green hydrogen will be produced each year once the site is operational.
The company has already completed 10 projects in Egypt, including a 700MW solar project in Kom Ombo.
Egyptian Prime Minister Mostafa Madbouly and China Energy Chairman Song Hailiang announced the project together during a recent meeting.