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

Last year, Scatec, Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO) (sponsors) entered into a joint development agreement and 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 an 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 per year of renewable ammonia.

Scatec 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 sign this Head of Terms with the global industry leader Yara Clean Ammonia. It is a testament to Scatec’s position in Egypt and our strategy to focus on developing renewable hydrogen projects in relation to existing ammonia production capacities. Scatec will bring 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 off-take agreements for low-emission ammonia. This project will further strengthen our renewable ammonia sourcing portfolio and is a testament to Yara Clean Ammonia’s position as the world’s largest marketer and distributor of ammonia as the most preferred off-take. Once the project reaches a final investment decision, the renewable ammonia from this project will help us reliably serve our customers across a variety of 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 help translate 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 investments in renewable hydrogen, reduce project implementation risks, and facilitate Egypt’s vision to become a regional and global hub for green hydrogen.”

“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 ECHEM President and Chairman, Eng. Ibrahim Mekki.

“Misr Fertilizers Production Company ‘MOPCO’, one of the leading producers of ammonia and urea in the MENA region, is collaborating 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 a framework agreement for this flagship offtaker of ammonia with Yara Clean Ammonia,” says MOPCO’s Chairman and Managing Director, 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 business competitiveness and unlock opportunities for renewable hydrogen exports. The European Investment Bank looks forward to working with Scatec and the project partners to unlock large-scale renewable hydrogen investment across Egypt,” says EIB Vice-President Gelsomina Vigliotti.