Scatec ASA, a prominent provider of renewable energy solutions, along with partners ECHEM and MOPCO, has reached an agreement on Heads of Terms for the offtake of renewable ammonia from Egypt with Yara Clean Ammonia, the world’s largest distributor of ammonia.
Last year, Scatec, together with the Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO), entered into joint development and shareholder agreements for the production of renewable ammonia.
The project involves developing up to 480 MW of renewable energy and a 240 MW electrolyzer facility to produce renewable hydrogen. This hydrogen will serve as feedstock for producing renewable ammonia at MOPCO’s existing facility in Damietta, Egypt, targeting an annual production capacity of up to 150,000 tonnes of renewable ammonia.
Scatec has also secured a Letter of Intent with the European Investment Bank (EIB) for long-term financing, demonstrating EIB’s commitment to supporting renewable hydrogen and ammonia projects in Egypt.
“This Heads of Terms agreement with Yara Clean Ammonia is a significant milestone for us,” says Scatec CEO Terje Pilskog. “It highlights Scatec’s strong presence in Egypt and our strategy to focus on renewable hydrogen projects aligned with existing ammonia production capabilities. We look forward to collaborating with Yara Clean Ammonia in the future.”
Yara Clean Ammonia CEO Hans Olav Raen adds, “Yara Clean Ammonia’s diverse portfolio of asset-backed and offtake agreements for low-emission ammonia will be further strengthened by this project. As the world’s largest ammonia trader, this agreement underscores our role as the preferred offtaker. Once the project proceeds to a final investment decision, the renewable ammonia produced will enhance our ability to reliably serve customers across various sectors.”
Egyptian Minister of Petroleum and Mineral Resources, H.E. Tarek El Molla, remarks, “Today’s agreement marks another step towards realizing Egypt’s national strategy for low-carbon hydrogen, facilitated through collaborations with private sector partners. These partnerships are essential for securing investments in renewable hydrogen, mitigating project risks, and advancing Egypt’s vision of becoming a regional and global hub for green hydrogen.”
ECHEM President & Chairman Eng. Ibrahim Mekki states, “We are excited about this significant milestone with Yara Clean Ammonia. This agreement not only reflects our commitment to sustainable energy solutions but also represents a substantial leap forward in our efforts to innovate within the petrochemical sector. Developing renewable ammonia aligns with our strategic objectives and will contribute to a greener future for Egypt and beyond.”
MOPCO Chairman and Managing Director Eng. Ahmed Mahmoud El-Sayed adds, “MOPCO is proud to collaborate with Scatec and ECHEM on this transformative project. The agreement with Yara Clean Ammonia for offtake underscores our commitment to advancing renewable ammonia production in Egypt. This initiative through Damietta Green Ammonia Company is a significant step towards producing 150,000 metric tons of renewable ammonia annually for global markets.”
Gelsomina Vigliotti, Vice President of the European Investment Bank, emphasizes, “Enabling industries to leverage renewable energy is crucial for fostering the green transition. Accelerating renewable hydrogen production in Egypt can enhance business competitiveness and create opportunities for exporting renewable hydrogen. The European Investment Bank looks forward to collaborating with Scatec and its partners to catalyze large-scale investments in renewable hydrogen across Egypt.”
This collaboration underscores the commitment of all parties involved to advancing sustainable energy solutions and promoting Egypt’s position in the global green hydrogen market.
