Yara Clean Ammonia, Scatec, ECHEM and MOPCO sign agreements with CEOs

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

Last year, Scatec, an Egyptian Petrochemical 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 these Terms and Conditions with the 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 in conjunction with existing ammonia production capacity. Scatec will contribute its knowledge and experience gained during other projects. We look forward to 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 is a testament to Yara Clean Ammonia’s position as the world’s largest ammonia trader and distributor. Once the final investment decision is made on the project, the renewable ammonia produced from this project will help us reliably serve our customers in several market sectors.” says Yara Clean Ammonia CEO Hans Olav Raen.

“Today’s signing is another step in our efforts to work with our private sector partners to support the translation of Egypt’s national 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 renewable hydrogen investments, reduce project risks, 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,” says the president and chairman of ECHEM, Eng. Ibrahim of Mecca.

“Misr Fertilizers Production Company “MOPCO”, one of the main producers of ammonia and urea in the MENA region, is working with its partners, ECHEM and Scatec ASA, to develop a major 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 the renowned global customer, Yara Clean Ammonia. As one of the shareholders of DGA, MOPCO is pleased to announce the signing of the main terms of this flagship ammonia collection system with Yara Clean Ammonia”, says the President and Managing Director of MOPCO, Eng. Ahmed Mahmud 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 renewable energy at scale with hydrogen investments across Egypt,” says EIB Vice President Gelsomina Vigliotti.

For more information please contact:

Yara Clean Ammonia:
Media inquiries: Hilde Steinfeld, [email protected], mobile: +47 993 53 030
Investor relations at Yara International: [email protected]

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

About Yara Clean Ammonia (YCA)
Yara is building on the knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to capitalize on the hydrogen economy in a market that is set to grow significantly over the coming decades. Our goal is to significantly strengthen our leading position as the world’s largest ammonia distributor, unlock green and blue value chains and drive the development of clean ammonia worldwide.

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 access, through Yara, to 18 ammonia terminals and numerous ammonia production and consumption facilities worldwide. Revenue and EBITDA for FY2023 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 reliable and affordable clean emerging markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 4.6 GW in operation and under construction across four continents. We are committed to growing 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
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 enhance the growth of the petrochemical industry through the implementation of the National Petrochemical Master Plan, which aims to optimize the use of natural gas in value-added products. ECHEM is empowered to develop a competitive petrochemical industry based on local human and natural resources, using cutting-edge technology and by implementing a pre-defined flexible strategy. ECHEM strives for a high standard of performance, forging a prominent position in a competitive environment and strives for efficient and sustainable use of natural resources. To learn more, visit www.echem-eg.com

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

MOPCO specializes in the production of urea as a primary product with a production capacity of 2 million tons per year and anhydrous ammonia as an intermediate product with a production capacity of 1.2 million tons per year through three plants using advanced EU technologies that achieve the highest level of product quality, safety and environmental protection. MOPCO exports about 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 are sold on the local market, respectively.

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