Scatec, ECHEM and MOPCO have agreed on heads of terms for renewable ammonia in Egypt

Scatec ASA, a leading renewable energy solutions provider, and its partners, ECHEM and 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.

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 the production of renewable ammonia.

The Sponsors 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 the 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.

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 supporting renewable hydrogen and renewable ammonia projects in Egypt.

“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 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 Hans Olav Raen.

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,” said 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.”

“We are excited to embark on this significant project in collaboration with Scatec and MOPCO. This agreement with Yara Clean Ammonia not only underscores our commitment to sustainable energy solutions but also marks a substantial step forward in our mission to innovate within the petrochemical industry. The development of renewable ammonia from this project aligns with our strategic goals and will contribute to a greener future for Egypt and beyond,” says Eng. Ibrahim Mekki.

“Misr Fertilizers Production Company “MOPCO”, one of the major ammonia and urea producers in MENA, is working together with their partners, ECHEM and Scatec ASA, to develop a major renewable ammonia production facility in Egypt through Damietta Green Ammonia Company, ”DGA”, that was recently established by the three parties. The facility will produce approximately 150,000 metric tons of renewable ammonia for export in the international market through the well-known global off-taker, Yara Clean Ammonia. As one of DGA shareholders, MOPCO, is pleased to announce the signature of the Heads of Terms for this flagship ammonia offtake with Yara Clean Ammonia,” says Eng. Ahmed Mahmoud El-Sayed.

“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 Gelsomina Vigliotti.

Engr. Haseeb Ullah

Haseeb covers the global energy market for both conventional and modern energy resources. His expertise is on the global energy supply chain from generation to distribution and end-users. He has a Master degree in Engineering Management and a Bachelor of Science degree in Electrical Engineering.
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