Scatec will build, operate and majority own the facility and a long-term off-take agreement will be entered into with Fertiglobe’s subsidiary EBIC. The facility will be located near EBIC in Ain Sokhna and is the first step towards developing a green hydrogen hub in Egypt.
This new partnership forms part of Scatec’s strategic initiative, “Power to X”, with the objective of enabling and realising industrial projects that contribute to reducing the carbon emissions through the provision of competitive renewable energy. The ambition is to develop long term partnerships where Scatec can capitalise on its expertise in renewable project development in high growth markets globally. Renewable technology, long term off-take contracts, equity co-investments and project financing from multilateral finance institutions represent key elements of this strategy.
“We are proud to establish a strong partnership with Fertiglobe and the Sovereign Fund of Egypt to move the green agenda forward in Egypt” said CEO Raymond Carlsen. “The development of this green hydrogen project builds on our long experience in project development, financing, and delivery of renewable energy projects in emerging markets. New business models and innovation have been at the core of Scatec since our inception, and we see green hydrogen as a natural part of our strategy and the renewable ecosystem in the years to come”.
Ahmed El-Hoshy, CEO of OCI N.V., added that Fertiglobe is increasingly becoming an ideal springboard to capture the huge growth opportunities offered by the hydrogen economy and that the participation of the Sovereign Fund of Egypt underlines Egypt’s commitment to become a global leader in the renewables space.
The parties will seek support from the Egyptian government for required regulatory approvals and sourcing of competitive renewable power from the grid, with the intention to build out new solar and wind capacity to power Egypt’s green hydrogen ambitions in the years to come. The project will be realised in close cooperation with leading hydrogen technology providers and multilateral development institutions for financing. Required engineering and development, including structuring of commercial agreements for the new facility, will start imminently with a target investment decision in 2022 and start-up of the hydrogen facility by 2024.
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