- Scatec ASA’s Egypt Green Hydrogen project, in partnership with Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company, reaches a key milestone, after Fertiglobe secured a green ammonia offtake agreement with Hintco in Germany, through the first ever H2Global auction.
Based on the award, Fertiglobe and Egypt Green Hydrogen have entered into a 20-year ammonia off-take agreement.
“The H2Global award represents a key milestone for the Egypt Green Hydrogen project in Ain Sokhna, Egypt. This demonstrates the competitiveness of green hydrogen and ammonia production in Egypt, driven by its abundant renewable energy resources and strategic geographical location. We are grateful for the Egyptian government´s leading role in supporting this pioneering project and we look forward to continuing to work with the relevant stakeholders to establish Egypt as a regional green hydrogen hub. With Fertiglobe securing an offtake agreement for the ammonia, Egypt Green Hydrogen will accelerate the project’s development and advance it towards financial close,” says Scatec CEO Terje Pilskog.
In 2021, Scatec and partners agreed to develop, build, own and operate a 100 MW electrolyser facility to produce renewable hydrogen to be used as feedstock for the production of renewable ammonia at Fertiglobe’s existing ammonia plant in Ain Sokhna, Egypt. The project will be powered by about 270 MW of solar and wind power capacity and deliver approximately 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually.
Scatec is the lead developer and majority sponsor of Egypt Green Hydrogen with an ownership share of 52% and will provide EPC services in collaboration with Orascom Construction. Scatec will further provide O&M and Asset Management services for the project alongside key technology providers and project partners.
Next important milestones for the project are to select the electrolyser supplier and complete the project financing process with the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Germany’s development finance institution and KfW subsidiary DEG, British International Investment (BII), and US International Development Finance Corporation (DFC), that are providing competitive financing to support the first green hydrogen and ammonia project in Egypt. The partners expect to reach financial close in the first half of 2025.
Author: Bryan Groenendaal
