In a significant development for the renewable energy sector, Scatec, a leading renewable energy firm, has signed a Heads of Terms agreement with Yara Clean Ammonia for the sale of renewable ammonia from Egypt. This agreement marks a pivotal step towards fostering green energy initiatives in the region. Additionally, Scatec has signed a letter of intent with the European Investment Bank (EIB), the lending arm of the European Union, to secure long-term project financing.
Scatec, in collaboration with the state-owned Egyptian Petrochemicals Holding Company (ECHEM) and the Misr Fertilizers Production Company (MOPCO), aims to develop up to 480 MW of renewable energy. The project will also include a 240 MW electrolyser facility dedicated to producing renewable hydrogen in Egypt. The initiative is set to achieve an annual production capacity of 150,000 tons of renewable ammonia, which will serve as feedstock for MOPCO's existing ammonia manufacturing facility in Damietta, Egypt.
Egypt's Minister of Petroleum and Mineral Resources, Tarek El Molla, highlighted the importance of this agreement in supporting the country's national low carbon hydrogen policy. He stated, "Such collaboration and partnerships will help secure renewable hydrogen investments, de-risk the implementation of projects, and facilitate realizing Egypt's vision of becoming a regional and global green hydrogen hub."
This agreement underscores Egypt's commitment to sustainable energy and its ambition to position itself as a leader in the global green hydrogen market. The collaboration between Scatec, Yara Clean Ammonia, and the European Investment Bank signifies a promising future for renewable energy initiatives in Egypt, contributing to the global effort to combat climate change and promote sustainable development
