Yara Clean Ammonia, Scatec, ECHEM and MOPCO sign preliminary terms of agreement for off-take of renewable ammonia in Egypt

Oslo and Cairo, July 1, 2024: Scatec ASA, a leading renewable energy solutions provider, and its partners, ECHEM and MOPCO, have agreed the terms of an offtake agreement for renewable ammonia from Egypt with Yara Clean Ammonia, the world’s largest retailer and distributor ammonia.

Last year, Scatec, Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO) (the “Sponsors”) entered into a joint development agreement and a shareholders agreement for the production of renewable ammonia.

The sponsors will develop and build up to 480 MW of renewable energy and up to 240 MW of electrolyzer to produce renewable hydrogen, which will be used as a feedstock for the production of renewable ammonia at MOPCO’s existing ammonia production facility in Damietta, Egypt. The target production capacity is up to 150,000 tons of renewable ammonia per year.

Scatec has also signed a Letter of Intent with the European Investment Bank (“EIB”) for long-term financing of the project, confirming the EIB’s commitment to supporting renewable hydrogen and renewable ammonia projects in Egypt.

“We are very pleased to have signed this Head 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 on top of existing ammonia production capacity. Scatec will contribute its expertise and experience gained in other projects. We look forward to our future cooperation,”
says Scatec CEO, Terje Pilskog.

“Yara Clean Ammonia has a diversified portfolio of asset-backed and low-emission ammonia offtake agreements. This project will further strengthen our renewable ammonia supply portfolio and demonstrate Yara Clean Ammonia’s position as the world’s largest ammonia trader and distributor. Once the project reaches a final investment decision, the renewable ammonia from this project will help us reliably serve our customers in several market sectors,” he says. Yara Clean Ammonia CEO, Hans Olav Raen.

“Today’s signature is another step in our efforts to work with our private sector partners to support the translation of Egypt’s low-carbon hydrogen strategy into action through concrete projects,” he said Egyptian Minister of Petroleum and Mineral Resources, HE Tarek El Molla. “Such collaborations and partnerships will help secure investments in renewable hydrogen, reduce project risk and facilitate Egypt’s vision of becoming a regional and global green hydrogen hub.”

“We are excited to embark on this significant project in partnership with Scatec and MOPCO. This agreement with Yara Clean Ammonia not only underscores our commitment to sustainable energy solutions, but also represents a significant step forward in our mission to innovate in the petrochemical industry. The development of renewable ammonia through this project is in line with our strategic goals and will contribute to a greener future for Egypt and beyond,” he said. ECHEM President and Chairman Eng. Ibrahim Mekki

“Misr Fertilizers Production Company “MOPCO”, one of the major producers of ammonia and urea in the MENA region, is working with its partners, ECHEM and Scatec ASA, to develop a large-scale renewable ammonia production facility in Egypt through Damietta Green Ammonia Company, “DGA”, which was recently established by the three parties. The facility will produce approximately 150,000 metric tons of renewable ammonia for export to the international market through a renowned global offtaker, Yara Clean Ammonia. As one of the shareholders of DGA, MOPCO is pleased to announce the signing of the Head of Terms for this flagship ammonia buy-back from Yara Clean Ammonia,” he says President and Managing Director of MOPCO Eng. Ahmed Mahmoud El-Sayed

“Enabling industry to use renewable energy is key to the green transition. Accelerating renewable hydrogen production in Egypt can strengthen corporate competitiveness and unlock renewable hydrogen export opportunities. The European Investment Bank looks forward to working with Scatec and its project partners to unlock large-scale renewable hydrogen investments across Egypt,” he says EIB Vice-President Gelsomina Vigliotti.

For further information please contact:
Yara Clean Ammonia:
Media inquiries: Hilde Steinfeld, [email protected], mobile: +47 99 35 30 30
Yara Int. Investor Relations: [email protected]

Scatec:
Investor relations: Andreas Austrell, [email protected], mobile: +47 974 38 686
Media enquiries: Meera Bhatia, [email protected], mobile: +47 468 44 959

About Yara Clean Ammonia (YCA)
Yara gains knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to leverage the hydrogen economy in a market that will grow significantly over the coming decades. Our goal is to significantly strengthen our global leadership as the world’s largest distributor of ammonia, unlock green and blue value chains and drive the development of clean ammonia around the world.

Building on Yara’s leading experience in global ammonia production, logistics and trading, Yara Clean Ammonia is working to capitalise on growth opportunities in low-emission fuels for shipping, power generation, low-emission food production and ammonia for industrial applications.
Yara Clean Ammonia operates the largest global ammonia network of 15 vessels and has, through Yara, access to 18 ammonia terminals and numerous ammonia production and consumption facilities around the world. Revenue and EBITDA for fiscal year 2023 were $1.9 billion and $101 million, respectively. Yara Clean Ammonia is headquartered in Oslo, Norway.
www.yaracleanammonia.com

About Scatec
Scatec is a leading provider of renewable energy solutions, accelerating access to emerging markets for reliable and affordable clean energy. As a long-term player, we develop, build, own and operate renewable energy plants with a capacity of 4.6 GW operating and under construction on four continents. We are committed to expanding our renewable energy capacity, delivered by our passionate employees and partners driven by a shared vision of “Improving Our Future.” Scatec is headquartered in Oslo, Norway and is listed on the Oslo Stock Exchange under the symbol “SCATC”. To learn more, visit www.scatec.com or connect with us on LinkedIn.

About ECHEM
The Egyptian Petrochemicals Holding Company (ECHEM) was established in January 2002 to manage and develop the petrochemical industry in Egypt through promising new investment areas. ECHEM’s priority is to support the development of the petrochemical industry through the implementation of the National Master Plan for the Petrochemical Industry, which aims to achieve optimal use of natural gas in value-added products. ECHEM has the right to develop a competitive petrochemical industry based on local human and natural resources, using the latest technologies and by implementing an established flexible strategy. ECHEM strives for high performance standards, gaining a significant position in a competitive environment, and strives for efficient and sustainable use of natural resources. To learn more, visit www.echem-eg.com

About MOPCO
Misr Fertilizer Production Company “MOPCO” is considered the largest producer of nitrogen fertilizers in Egypt and one of the main producers of these products in the MENA region. It was established in 1998 on a plot of 400,000 m2 in the Damietta Free Zone next to the Damietta port located in the center of the world, with assets exceeding 50 billion Egyptian pounds.

MOPCO specializes in the production of urea as a basic product with a production capacity of 2 million tons per year and anhydrous ammonia as an intermediate product with a capacity of 1.2 million tons per year in its three plants using advanced EU technologies that allow to achieve the highest level of product quality, safety and security environment. MOPCO exports approximately 50% of its urea production and 40% of its anhydrous ammonia production to international markets, especially the EU, while 50% and 60% of its urea and anhydrous ammonia production, respectively, are sold in the local market.

This information is subject to the disclosure requirements pursuant to Art. 5-12 of the Norwegian Securities Trading Act.