Scatec ASA, a leading provider of renewable energy solutions, along with its partners ECHEM and MOPCO, has signed Heads of Terms for the renewable ammonia offtake from Egypt with Yara Clean Ammonia, the world’s largest trader and distributor of ammonia. Last year, Scatec, the Egyptian Petrochemicals Holding Company (ECHEM), and Misr Fertilizers Production Company (MOPCO) (the “Sponsors”) entered into a joint development agreement and a shareholder agreement for producing renewable ammonia.
The Sponsors plan to develop and construct up to 480 MW of renewable energy and an up to 240 MW electrolyzer facility for producing renewable hydrogen, which will serve as feedstock for renewable ammonia production at MOPCO’s existing facility in Damietta, Egypt. The project aims for a production capacity of up to 150,000 tonnes of renewable ammonia annually.
Scatec also signed a Letter of Intent with the European Investment Bank (EIB) for long-term financing, highlighting EIB’s commitment to supporting renewable hydrogen and ammonia projects in Egypt.
“We are very pleased to sign this Heads of Terms with global industry leader Yara Clean Ammonia. This agreement showcases Scatec’s strong position in Egypt and our strategy to develop renewable hydrogen projects linked to existing ammonia production. Scatec brings its expertise and experience from other projects, and we look forward to future collaboration,” said 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 enhance our sourcing portfolio of renewable ammonia and demonstrates Yara Clean Ammonia’s position as the preferred off-taker, being the world’s largest trader and distributor of ammonia. Once the project reaches a final investment decision, the renewable ammonia will help us reliably serve our customers across various market sectors,” said Yara Clean Ammonia CEO Hans Olav Raen.
Today’s signature is another step towards our efforts to collaborate with private sector partners to support Egypt’s national low-carbon hydrogen strategy through specific projects,” said Egyptian Minister of Petroleum and Mineral Resources, H.E. Tarek El Molla. “Such collaborations and partnerships will help secure investments in renewable hydrogen, mitigate project risks, and facilitate Egypt’s vision of becoming a regional and global green hydrogen hub.
We are thrilled to embark on this significant project with Scatec and MOPCO. This agreement with Yara Clean Ammonia underscores our commitment to sustainable energy solutions and marks a substantial step forward in our mission to innovate within the petrochemical industry. Developing renewable ammonia from this project aligns with our strategic goals and will contribute to a greener future for Egypt and beyond,” said ECHEM President & Chairman Eng. Ibrahim Mekki.
“Misr Fertilizers Production Company (MOPCO), a major producer of ammonia and urea in the MENA region, is collaborating with ECHEM and Scatec ASA to develop a large-scale renewable ammonia production facility in Egypt through the newly established Damietta Green Ammonia Company (DGA). The facility will produce approximately 150,000 metric tons of renewable ammonia for export to the international market, facilitated by the global off-taker, Yara Clean Ammonia. As a shareholder in DGA, MOPCO is pleased to announce the signing of the Heads of Terms for this flagship ammonia offtake agreement with Yara Clean Ammonia,” stated MOPCO Chairman and Managing Director Eng. Ahmed Mahmoud El-Sayed.
“Enabling industry to harness renewable energy is key to the green transition. Accelerating renewable hydrogen production in Egypt can enhance business competitiveness and create 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,” said EIB Vice President Gelsomina Vigliotti.
