Econostrum | Economic News in the Mediterranean

Norway's Scatec to build green ammonia plant in Egypt

Written by Marie-Cécile Audibert on Thursday, March 10th 2022 à 16:35 | Read 493 times

EGYPT. Scatec announced the signing, on Thursday 10 March 2022, of a memorandum of understanding with the General Authority of the Suez Canal Economic Zone (SCZONE), the Sovereign Wealth Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC) and the New Renewable Energy Authority (NREA). Together with these four partners, the Norwegian company will develop a green ammonia plant in the Ain Soukhna industrial zone (west coast of the Gulf of Suez) on land allocated by NREA.

With a production capacity of one million tonnes per year, with an extension to three million already planned, this $5bn (€4.5bn) project, which will be carried out in two phases, will be the first of its kind to be built in Egypt.

Fuelled by green hydrogen, the plant is expected to start operating in 2025. The plant will use desalinated seawater to operate and will use renewable energy generated from sites specified by NREA and transmitted by the Egyptian Electricity Transmission Company. "Long-term purchase agreements will be entered into to allow for consolidated project financing. The green ammonia will mainly be exported to European and Asian markets, where demand for clean ammonia is growing rapidly," says a statement from the Norwegian company.

A first step

"This is the first step towards the adoption of green ammonia technology and the creation of a green fuel industry cluster in the SCZONE," commented Yehia Zaki, Chairman of the General Authority of the Suez Canal Economic Zone.
According to Mostafa Madbouly, Egyptian Prime Minister, who was present at the signing, "Many international companies have announced their desire to implement green hydrogen projects in Egypt, and there are several promising opportunities, especially since they are at the top of the government's agenda today."

Egypt is committed to increasing investment to maximise the production of green and low-carbon energy. "This partnership reinforces the fund's commitment to invest in the entire energy transition value chain, in line with Egypt's roadmap towards zero emission targets," says Ayman Soliman. For the CEO of the Sovereign Wealth Fund of Egypt, "this is an attractive investment opportunity for a global player such as Scatec, which wants to create a state-of-the-art green ammonia plant, taking advantage of Egypt's well-developed natural resources and infrastructure. We are excited to play an active role in the green transformation towards a more sustainable future."

From 7 to 18 November 2022, Sharm el-Sheikh will host the COP27 Climate Conference.

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