July 02, 2024 [Tank Storage]- Scatec ASA, a leading renewable energy solutions provider, and its partners, the Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO), have agreed on Heads of Terms for renewable ammonia offtake from Egypt with Yara Clean Ammonia, the world’s largest trader and distributor of ammonia.
‘We are very pleased to be signing this Heads of Terms with global industry leader Yara Clean Ammonia. This is a testament to Scatec’s position in Egypt and our strategy to focus on developing renewable hydrogen projects related to existing ammonia production capacity. Scatec will bring their expertise and experience gained from other projects. We are looking forward to our future collaboration,’ says Scatec CEO Terje Pilskog.
‘Yara Clean Ammonia has a diversified portfolio of asset backed and offtake agreements for low-emission ammonia. This project will further strengthen our sourcing portfolio of renewable ammonia and is a testimony to Yara Clean Ammonia as the most preferred off-taker as the world’s largest trader and distributor of ammonia. Once the project has reached a final investment decision, the renewable ammonia from this project will help us reliably serve our customers across several market sectors,’ says Yara Clean Ammonia CEO Hans Olav Raen.
The partners will develop and build up to 480 MW of renewable energy and an up to 240 MW electrolyser facility for the production of renewable hydrogen, which will be used as feedstock for production of renewable ammonia at MOPCO’s existing ammonia production facility at Damietta in Egypt. The targeted production capacity is up to 150,000 tonnes of renewable ammonia per annum.
‘Today’s signature is a further step towards our efforts in working with our partners from the private sector to support translating Egypt’s national low carbon hydrogen strategy into action through specific projects,’ says Egyptian Minister of Petroleum and Mineral Resources, H.E. Tarek El Molla. ‘Such collaboration and partnerships will help secure renewable hydrogen investments, de-risk implementation of projects and facilitate realizing Egypt’s vision of becoming a regional and global green hydrogen hub.’
Scatec also signed a letter of Intent with the European Investment Bank (EIB) for long-term financing for the project, showcasing EIB’s commitment to support renewable hydrogen and renewable ammonia projects in Egypt.
‘Enabling industry to harness renewable energy is key for the green transition. Accelerating renewable hydrogen production in Egypt can strengthen business competitiveness and unlock opportunities to export renewable hydrogen. The European Investment Bank looks forward to working with Scatec and project partners to unlock large scale renewable hydrogen investment across Egypt,’ says EIB Vice President Gelsomina Vigliotti.
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