Scatec signs MoU for 1 million tonnes a day green ammonia project in Egypt
Norway’s Scatec has signed a memorandum of understanding (MoU) with the General Authority for Suez Canal Economic Zone (SCZone), the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA), to jointly develop a green ammonia facility in Egypt with a production capacity of one million tonnes a year
Norway’s Scatec has signed a memorandum of understanding (MoU) with the General Authority for Suez Canal Economic Zone (SCZone), the Sovereign Fund of Egypt, the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA), to jointly develop a green ammonia facility in Egypt with a production capacity of one million tonnes a year.
The green hydrogen and ammonia facility will be located in the SCZONE in Ain Sokhna Industrial Zone and will be powered by renewable energy plants to be built in close proximity on an area of land allocated by NREA. The plant will be designed so it can be expanded up to 3 million tonnes a year in the future.
Scatec intends to develop the project in phases, with long-term offtake agreements to be secured to enable non-recourse project financing for the green ammonia. The green ammonia will mainly be exported to European and Asian markets, where demand for clean Ammonia is increasing rapidly.
“We are proud to partner once more with the Government of Egypt represented by SCZONE and TSFE, as well as with our long-term partners EETC and NREA, for the realisation of this exciting large-scale green ammonia project in Egypt. We believe that no effort should be spared to accelerate the energy transition, and we are thrilled to be contributing to Egypt’s aspiration to become a hub for green fuel,” said Raymond Carlsen, Scatec CEO, following the signing of the MoU.
“The SCZONE welcomes the opportunity of partnering with the distinguished public and private entities joining forces for the development of this mega project, and we look forward to witnessing its execution over the coming months as a first step towards the adoption of the green ammonia technology and creation of a green fuels’ industrial hub in the SCZONE. We are ready to provide all the support needed to expedite the project’s implementation,” said Yehia Zaki, chairman of the SCZone, following the signing.
“This partnership further solidifies the fund’s commitment to investing in the whole energy transition value chain in line with Egypt’s roadmap towards zero emission targets,” said Ayman Soliman, CEO of the Sovereign Fund of Egypt.
In October 2021, Scatec and Fertiglobe, a joint venture of the local Orascom Construction Industries and UAE-based Abu Dhabi National Oil Company (Adnoc), has entered into an agreement with the Sovereign Fund of Egypt (SFE) to develop a 50-100MW electrolyser facility to produce green hydrogen for green ammonia production in Egypt.
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