Food & Climate
Ferchem Misr for Fertilizers and Chemicals has developed its production lines to comply with environmental standards, potentially qualifying it to sell carbon credits, according to Abdel Salam ElGabaly, Vice Chairman of Polyserve Fertilizers, which owns the majority of Ferchem shares.
El Gabaly told “Food & Climate” platform, on the sidelines of the Egyptian Exchange’s opening bell ringing ceremony on Wednesday, September 10, 2025, marking the transition of Ferchem Misr shares to the main market, that the development process to comply with environmental standards began some time ago and will conclude at the end of this year.
He continued, saying, “Years ago, factories did not take environmental standards into account when building, but now things have changed. We have restructured all factories to comply with environmental standards, which take into account all environmental components, including soil, air, and water.”
He added, in response to a question from “Food & Climate” regarding the sale of carbon credits resulting from the factory upgrade process, “We have specialized companies studying this matter. Of course, it is possible.”
He also explained that Polyserve Fertilizers is studying the potential for green ammonia production, “but it’s a new field and it’s changing daily, but we’re looking into it and monitoring its developments.”
European carbon tax
The Egyptian government is discussing with the European Union a carbon tax, which will be imposed on EU imports of a range of goods, including fertilizers, according to Abdel Salam El Gabaly, Vice President of Polyserve Fertilizers and Chemicals, to “Food & Climate” platform.
El Gabaly said, “This issue is being addressed at the state level, not the company level. Our government is discussing it, but it hasn’t included us in the dialogue yet.”
The European Commission is implementing a carbon tax starting next year (2026).
The value of this tax could reach $100 per ton, raising export costs, according to previous statements by Saad Abu El-Maati, Secretary-General of the Arab Fertilizer Association.
Nikolaos Zgimes, the Minister’s Advisor and Head of the Trade Department at the European Embassy in Egypt, previously told “Food & Climate” Platform: “The first phase begins next year, but the tax is very, very low at this stage, so I don’t think it will pose a problem for Egyptian fertilizer exports, or any other.”
Polyserve Fertilizers exports 50% of its 100,000 tons of phosphate fertilizers annually to Latin American countries, such as Brazil, Europe, Africa, and the Near East.
Polyserve Fertilizers expansion
Abdel Salam El Gabaly, Vice Chairman of the Board of Directors of Polyserve Fertilizers and Chemicals, said the company is considering establishing two projects to produce phosphate fertilizers, producing sulfuric and phosphoric acids, with investments ranging between $400 and $500 million. He expected to announce the details during the last quarter of the year.
However, he clarified that financing will be provided through a capital increase, along with contributions from new investors.
El Gabaly explained to “Food & Climate” Platform that the reason his company is focusing on producing phosphate fertilizers is the availability of raw materials in Egypt.
He added that factories do not use natural gas as a production raw material, but rather as an energy source, as phosphate fertilizers do not rely on gas as a raw material, unlike nitrogen fertilizers.
Ferchem has merged with three major companies in the Egyptian market with the aim of increasing production capacity and expanding the range of products, particularly compound and phosphate fertilizers, by relying on Egyptian phosphate.
Regarding external expansion, El Gabaly said, “We are currently studying opportunities to expand outside Egypt, especially in countries where industrial raw materials are available. We are also seeking to explore new sources in Africa, which will allow us to strengthen supply chains and expand manufacturing.”
Ferchem Egypt for Fertilizers and Chemicals was established in 2001 with a capital of EGP 35.1 million as a leading Egyptian joint-stock company in the blended fertilizer industry.
It has added phosphate fertilizers and soluble fertilizers to help support and develop the fertilizer and agricultural industry in Egypt.
The company’s factories and headquarters are located in Sadat City, Menoufia Governorate, on an area of 33,000 square meters, according to the company’s website.