Egypt signed the first binding contract to purchase green ammonia, between the Norwegian company “Scatec”, operating in Egypt, and the company “Fertiglobe”, for a period of 20 years, during the activities of the Egyptian-European Investment Conference, which began its work on Saturday and will continue for two days.
The Egyptian Cabinet said in a statement on Saturday evening: “Two important contracts have been signed to purchase green ammonia, and one of these contracts is the first binding contract with Fertiglobe to purchase green ammonia worldwide.”
He explained that the second contract was signed with the Norwegian company Yara Clean Ammonia to purchase green ammonia for 20 years from the Damietta Ammonia Project, which the company will implement with investments amounting to $900 million in Damietta Port, in cooperation with Mobco and the Petrochemicals Holding Company.
Dr. Mostafa Madbouly, Prime Minister, met with Terje Billskog, CEO of Scatec, and Hans Olav Rein, CEO of Yara Clean Ammonia, in the presence of Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, Hilda Klemetsdal, Ambassador of the Kingdom of Norway to Cairo, Walid Gamal El Din, Chairman of the General Authority of the Suez Canal Economic Zone, and Mohamed Amer, Executive Vice President of Scatec for the Middle East and Africa.
- Close cooperation relations
Dr. Mostafa Madbouly stressed that Egypt and Norway have close cooperative relations, and expressed his appreciation for the Norwegian companies that are working on implementing a number of important projects in Egypt, the most prominent of which is Scatec, which enjoys great support and interest from the Norwegian government.
Terje Bilskog, CEO of Scatec, said that the Egypt Green Hydrogen Alliance, led by Scatec, with Fertiglobe, Orascom Construction, and the Egyptian Sovereign Fund, in cooperation with the Egyptian Electricity Transmission Company, succeeded in signing the two contracts.
He pointed out that the alliance began building the project in 2021 with the aim of developing, building and operating a green hydrogen production station, with a capacity of 100 megawatts in the Suez Canal Economic Zone, where it is converted into green ammonia at the Misr Fertilizers Company factory, and exported abroad through the project company “Egypt for Green Hydrogen”.
He added that the project produces about 13,000 tons of green hydrogen, which is converted into about 70,000 tons of ammonia produced from renewable energy per year, with a total investment of $500 million, through two solar and wind energy production stations with a capacity of 270 megawatts to feed the hydrogen analysis and ammonia manufacturing processes.
The CEO of Scatec explained that after the project succeeded in securing a long-term agreement, the first of its kind in the world, to sell the project’s production of green ammonia for 20 years to Fertiglobe, the company will complete the project to work with financing partners and the New and Renewable Energy Authority to complete the preparation of financing contracts and land use for renewable energy plants, after the company successfully operated the first phase of the project.
Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, stressed that the agreement reflects confidence in the project and the investment climate in Egypt, noting that the initial investment cost of the project is estimated at about $900 million, with a production capacity of up to 150 thousand tons of green ammonia annually.
He pointed out that the project aims to generate renewable energy with a total capacity of up to 480 megawatts of renewable energy from wind and solar energy.
Engineer Tarek El Molla explained that the project aims to produce green ammonia using the available production capacities of Mobco, noting that the main terms and conditions of the contract guarantee success in securing buyers for the green ammonia that will be produced from the project.
The Minister of Petroleum added that the scope of the project also includes the construction of a seawater desalination plant and a marine pier to export green ammonia from Damietta Port, and it is expected to start operating in 2027.