Scatec partnership to develop a large-scale green ammonia facility in Egypt

Scatec has signed a memorandum of understanding (MOU) with the General Authority for Suez Canal Economic Zone (SCZONE), The Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA), to jointly develop a green ammonia facility in Egypt.
Scatec partnership to develop a large-scale green ammonia facility in Egypt
Courtesy of Scatec.

The new green hydrogen and ammonia facility will have a production capacity of one million tonnes annually and with a potential for an expansion to three million tonnes annually. It 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 facility is the first large-scale project for production of green ammonia in Egypt, which also includes the participation of the Government of Egypt and is a demonstration of the country’s pledge to maximise low carbon and green energy production. Egypt will host the United Nations Climate Change Conference, also known as COP27, in Sharm Elsheikh later this year.

“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” said Raymond Carlsen, CEO of Scatec. “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.”

Eng. Yehia Zaki, Chairman of the General Authority for Suez Canal Economic Zone, added that the SCZONE welcomes the opportunity of partnering with the distinguished public and private entities joining forces for the development of this mega project, and that it is looking 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.

At a time where alternative energy is more important than ever, Scatec will utilise its expertise in renewables, project structuring and financing, as well as execution and operation to help establish a green energy hub and green corridor in Egypt.

Once developed, Scatec intends to implement the project in phases based on Scatec’s integrated business model. Long term offtake agreements will 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.

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