Yara Clean Ammonia signs contract to collect renewable ammonia in Egypt

The latest agreement with Yara builds on a previous agreement between the parties to develop green ammonia production capacity in Egypt, which is a clear signal of demand for the end product.

Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO) entered into a new joint development and profit-sharing agreement with Norwegian renewable energy company Scatec last year, creating a new company, Damietta Green Ammonia Company, which will use green hydrogen for the production of green ammonia in Egypt.

The companies have agreed to develop up to 480 MW of renewable energy and an electrolyser of up to 240 MW to produce green hydrogen. The renewable hydrogen will then be used as a feedstock for ammonia production at MOPCO’s existing ammonia production plant in Damietta.

The agreement calls for production of 150,000 tons of green ammonia per year, with the project expected to start in 2027. The $890 million project includes a seawater desalination plant and a jetty that will allow green ammonia to be exported from Damietta, according to Egyptian Petroleum and Mineral Resources Minister Tarek El Molli.

Scatec also signed a letter of intent with the European Investment Bank (EIB) for long-term financing of the project.

“We are very pleased to sign this Agreement with the global industry leader Yara Clean Ammonia. It confirms Scatec’s position in Egypt and our strategy to focus on the development of renewable hydrogen projects in conjunction with our existing ammonia production capacity,” said Scatec CEO Terje Pilskoga.

“This project will further strengthen our renewable ammonia supply portfolio and demonstrates Yara Clean Ammonia’s most preferred customer as the world’s largest ammonia trader and distributor. Once the project has made its final investment decision, the renewable ammonia resulting 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 private sector partners to support the translation of Egypt’s national low-emission hydrogen strategy into action through concrete projects,” 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.”

“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 through hydrogen investment across Egypt,” says EIB Vice President Gelsomina Vigliotti.

Green ammonia was the key topic of the two-day EU-Egypt investment conference held last weekend. The result was the conclusion of contracts worth billions of dollars between companies from Egypt and the European bloc.