Scatec today (10 March) has signed an 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.
The plant initial capacity would be 1 million tonnes/year and potential for an expansion to 3 million tonnes/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 close to an area of land allocated by NREA.
Scatec will leverage its expertise in renewables, project structuring and financing, and 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 increases rapidly.
Raymond Carlsen, CEO of Scatec, said, “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, noted: “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.”
Ayman Soliman, CEO of The Sovereign Fund of Egypt, added, “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.”