Strategic agreement on renewable ammonia in Egypt

Scatec ASA, in partnership with Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO), has signed a major agreement with Yara Clean Ammonia for the purchase of renewable ammonia in Egypt. This agreement provides for the development of 480 MW of renewable energy and 240 MW of electrolysis facilities to produce 150,000 tons of renewable ammonia per year at MOPCO’s plant in Damietta. Egypt is an ideal location for investors in the ammonia sector, as Petrofac did in 2022.

The project benefits from financial support from the European Investment Bank (EIB), underlining its commitment to financing hydrogen projects in Egypt. This investment marks a significant step forward in the cooperation between Scatec, ECHEM and MOPCO.

Impact on economy and industry

Scatec CEO Terje Pilskog highlighted the importance of this agreement, highlighting Scatec’s strategy to develop renewable hydrogen projects. Yara Clean Ammonia, as a leading player in the market, strengthens its renewable ammonia portfolio with this partnership. This partnership is expected to have a positive impact on local and international markets.

HE Tarek El Molla, Minister of Petroleum and Mineral Resources of Egypt, said the cooperation supports Egypt’s low-emission hydrogen strategy, ensuring investment security and facilitating the realization of Egypt’s vision as a regional hydrogen hub.

Technological and financial development

Eng. Ibrahim Mekki, Chairman of ECHEM, emphasized the strategic importance of this project for industrial innovation in Egypt. Damietta Green Ammonia Company (DGA) was established to oversee this ambitious project. This partnership will produce 150,000 tons of renewable ammonia for export, strengthening MOPCO’s role in this sector.

EIB Vice-President Gelsomina Vigliotti stressed the importance of this project in increasing the competitiveness of companies and opening up export opportunities for renewable hydrogen.

This joint project between Scatec, ECHEM, MOPCO and Yara Clean Ammonia is essential to achieving Egypt’s economic and industrial goals. By combining the resources and expertise of these companies, Egypt is positioning itself as a key player in the production of renewable ammonia.