Scatec, Fertiglobe Plc and the Sovereign Fund of Egypt (TSFE) will jointly develop a 50-100 MW green hydrogen facility as feedstock for green ammonia production in Egypt.
Under the agreement, 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, Egypt.
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 commercial agreements for the facility, will start following the investment decision in 2022, with the start-up of the hydrogen facility set for 2024.
The partners will seek support from the Egyptian government for required regulatory approvals and sourcing of competitive renewable power from the grid, aiming to build new solar and wind capacity. The project is a step towards making Egypt achieving its goal to become a global leader in the hydrogen industry.
Raymond Carlsen, CEO of Scatec, said, “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.”
Ahmed El-Hoshy, CEO of OCI N.V., noted, “Together, we will deploy world-leading technology to ramp up our green ammonia production profile and further expand our low-carbon portfolio.”
Ayman Soliman, CEO of TSFE, added, “The Sovereign Fund of Egypt is a manifestation of Egypt’s 2030 Vision with the principles of sustainable development and impact investment instilled in its mandate.”
Scatec is a renewable power producer, delivering affordable and clean energy with headquarter in Norway. Fertiglobe, headquartered in Abu Dhabi, is an ammonia producer jointly owned by OCI N.V. and Abu Dhabi National Oil Company (ADNOC). The Sovereign Fund of Egypt (TSFE), an independently managed investment fund, was established in 2018 to attract private investment to Egypt and promote and co-invest in state-owned assets to maximise their value and support the Egyptian economy.