Scatec ASA, in collaboration with Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company, has achieved a significant milestone with its Egypt Green Hydrogen project. The project recently secured a 20-year ammonia offtake agreement with Hintco in Germany, following the first-ever H2Global auction. This agreement was signed at the Egypt-EU Investment Conference on June 29, 2024, and marks a key step forward in establishing Egypt as a hub for green hydrogen and ammonia production.
The Egypt Green Hydrogen project, located in Ain Sokhna, will utilize a 100 MW electrolyser facility powered by approximately 270 MW of solar and wind energy. This facility will produce around 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually. Scatec, as the lead developer and majority sponsor with a 52% ownership share, will provide EPC services alongside Orascom Construction and handle O&M and Asset Management services.
The project represents a critical advancement in Scatec's mission to support sustainable energy solutions. The company's CEO, Terje Pilskog, highlighted the importance of this milestone, noting that the competitiveness of green hydrogen and ammonia production in Egypt is bolstered by the country's abundant renewable resources and strategic location. The project is expected to accelerate towards financial closure, with support from key financial institutions like the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).
The involvement of these international partners underscores the global significance of the project. Fertiglobe's CEO, Ahmed El-Hoshy, emphasized the company's leadership in sustainable ammonia production and the importance of the H2Global award in making such investments economically viable. Additionally, representatives from EBRD, DEG, and BII expressed their commitment to supporting Egypt's potential as a leader in renewable energy and green hydrogen production, highlighting the project's role in promoting a sustainable future for the region.
Located in Egypt's Suez Canal Economic Zone (SCZONE), the Egypt Green Hydrogen project is a testament to the country's ambition to become a global hub for green hydrogen industries. SCZONE Chairman Waleid Gamal Eldien noted the strategic importance of the agreement as it aligns with Egypt's vision of leveraging its renewable resources and strategic location. The project's success not only demonstrates EU support for green hydrogen but also showcases Egypt's leadership in attracting foreign direct investment for green projects.
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21 w
This is quite a great commitment in ensuring that we bringing about change.
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23 w
A forward-looking approach to sustainable development
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23 w
What a commitment! This is to show, if we commit and collaborate, we can achieve our set climate goals with ease and faster
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23 w
This is great news.such commitments will enable us to reduce pollution globally by a huge Percentage.
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A promising significant contributions to reducing carbon emissions and fostering a cleaner, more sustainable future.
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This is a great project that Egypt has made and for them to have a 20-year contract shows a great commitment to green energy.
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24 w
This is a great commitment to renewable energy. We can do it.