Renewable energy producer Scatec has signed a memorandum of understanding (MoU) with the General Authority for the Suez Canal Economic Zone (SCZone), the Sovereign Fund of Egypt (TSFE), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA), to jointly develop a green ammonia facility in Egypt with an initial production capacity of one-million tonnes a year and potential to possibly increase to three-million tonnes a year.

The green hydrogen and ammonia facility will be located in the SCZone in the Ain Sokhna Industrial Zone and will be powered by renewable energy plants to be built in close proximity on an area of land allocated by the NREA.

This is the first large-scale project for the production of green ammonia in the country, which also includes the participation of the Egyptian government.

It is considered to be a demonstration of the country’s pledge to maximise low-carbon and green energy production.

“We are proud to partner once more with the government of Egypt represented by SCZone and the TSFE, as well as with our long-term partners the EETC and the NREA, for the realisation of this exciting large-scale green ammonia project in Egypt. We believe that no effort should be spared to accelerate the energy transition, and we are thrilled to be contributing to Egypt’s aspiration to become a hub for green fuel,” comments Scatec CEO Raymond Carlsen.

“The SCZone welcomes the opportunity of partnering with the distinguished public and private entities joining forces for the development of this megaproject, and we look forward to witnessing its execution over the coming months as a first step towards the adoption of the green ammonia technology and creation of a green fuels’ industrial hub in the SCZone. We are ready to provide all the support needed to expedite the project’s implementation," says SCZone chairperson Yehia Zaki.

TSFE CEO Ayman Soliman states that the partnership further solidifies the fund’s commitment to investing in the full energy transition value chain in line with Egypt’s Roadmap Towards Zero Emission Targets.

"This project is a collaborative effort between the Ministry of Electricity and Renewable Energy, the SCZone and the TSFE to deliver an attractive investment opportunity to a global player like Scatec to develop a state-of-the-art green ammonia facility, capitalising on Egypt’s natural resources and well-developed infrastructure. We are thrilled to play an active role in the green transformation towards a more sustainable future,” Soliman says.

Once developed, Scatec intends to implement the project in phases based on the company's integrated business model.

Long-term offtake agreements will be secured to enable non-recourse project financing for the green ammonia.

The green ammonia will mainly be exported to European and Asian markets, where demand for clean ammonia is increasing rapidly.