Renewable energy firm Scatec signed a Heads of Terms with ammonia trader and distributor Yara Clean Ammonia for the sale of renewable ammonia from Egypt. The company also signed a letter of intent with the European Investment Bank – the lending arm of the European Union – for long-term project financing.
Scatec, in partnership with state-owned Egyptian Petrochemicals Holding Company (ECHEM) and petrochemical and fertilizer firm Misr Fertilizers Production Company (MOPCO), plan to develop up to 480 MW of renewable energy as well as a 240 MW electrolyser facility to produce renewable hydrogen in Egypt.
The initiative targets an annual production capacity of 150,000 tons of renewable ammonia, which will serve as feedstock for MOPCO’s existing ammonia manufacturing facility in Damietta, Egypt.
According to Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla, the agreement supports the country in putting its national low carbon hydrogen policy into practice through targeted initiatives. He stated that, “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.”