Scatec and Fertiglobe sign 20-year hydrogen contract in Egypt

Scatec ASA and Fertiglobe have reached an important milestone in the Egyptian green hydrogen project. This project, developed in partnership with Orascom Construction, Sovereign Fund of Egypt and Egyptian Electricity Transmission Company, aims to produce renewable hydrogen to power green ammonia production. The sales agreement was signed at the Egypt-EU Investment Conference in Ain Sokhna.
The project is based on the installation of a 100 MW electrolyser powered by 270 MW of solar and wind energy. Scatec has also invested in wind energy in Egypt. The aim is to produce around 13,000 tons of renewable hydrogen and up to 74,000 tons of green ammonia per year. This initiative demonstrates Egypt’s ability to position itself in the global green energy market thanks to its renewable resources and strategic geographical location.

Partners and financing

Scatec, as the main developer with a 52% majority stake, will provide EPC services in partnership with Orascom Construction. The project is supported by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), DEG (KfW), British International Investment (BII) and the US International Development Finance Corporation (DFC).
Final financing of the project is scheduled for the first half of 2025, enabling Egypt to become a regional hub for green hydrogen. The project is located in the Suez Canal Economic Zone (SCZONE), which aspires to become a major hub for the green hydrogen industry.

Key elements of the project

The 20-year green ammonia sales agreement is the result of the first H2Global tender won by Fertiglobe. This agreement represents a significant step forward in the development of the project and paves the way for large-scale commercial production. Key next steps include selecting an electrolyzer supplier and finalizing the project financing process with international financial partners.
The Egypt Green Hydrogen project aims to provide competitive and sustainable energy solutions, helping to diversify the Egyptian economy and attract foreign direct investment into the energy sector. This development is in line with Egypt’s strategy to become a leader in renewable energy and green hydrogen.

Economic and strategic impact

The development of green hydrogen in Egypt represents a strategic investment in the country’s energy infrastructure. It creates employment opportunities and stimulates local economic growth. By collaborating with international companies and financial institutions, Egypt is strengthening its position in the global green energy market and diversifying its sources of income.
The 20-year green ammonia agreement guarantees stable, long-term demand for the hydrogen produced, providing financial security to the partners involved. In addition, cooperation with entities such as EBRD, EIB and other financial institutions strengthens the credibility of the project and ensures competitive financing.

Partners’ declarations

Ahmed El-Hoshy, CEO of Fertiglobe, stressed that this agreement is a key step for the sustainable production of ammonia and the future development of the green hydrogen project in Egypt. EIB Vice-President Gelsomina Vigliotti highlighted the important role of green hydrogen in the global energy transition.
Monika Beck, Managing Director of DEG, expressed DEG’s mission to promote green hydrogen as a driver of economic transformation. Iain Macaulay of BII highlighted Egypt’s potential to become a world leader in renewable energy and green hydrogen production.
This green hydrogen project represents a significant step forward for Egypt, positioning the country as a major player in the renewable energy sector. With the support of international partners and competitive financing, Egypt is on track to become a global hub for green hydrogen, driving energy transition and sustainable development.