Scatec ASA, in collaboration with partners Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt, and the Egyptian Electricity Transmission Company, has achieved a significant milestone in its Egypt Green Hydrogen project. The project has gained momentum following Fertiglobe’s success in securing a green ammonia offtake agreement with Hintco in Germany through the pioneering H2Global auction.
The 20-year ammonia offtake agreement was formalized at the Egypt-EU Investment Conference held in Egypt on June 29, 2024. This development marks a crucial step for the Ain Sokhna-based project, showcasing the viability and competitiveness of producing green hydrogen and ammonia in Egypt, a country rich in renewable energy sources and strategically located.
Scatec CEO, Terje Pilskog, expressed his gratitude towards the Egyptian government for its substantial support and commitment to this groundbreaking initiative. “The H2Global award is not just a milestone but also a testament to Egypt’s potential as a future regional hub for green hydrogen,” he stated. With this new offtake agreement, the Egypt Green Hydrogen initiative is set to accelerate its progress and move closer to financial closure.
Initiated in 2021, the project involves the construction of a 100 MW electrolyser facility designed to generate renewable hydrogen. This hydrogen will serve as a feedstock for renewable ammonia production at Fertiglobe’s existing plant in Ain Sokhna. The facility will harness approximately 270 MW of solar and wind energy, expecting to produce around 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually.
Scatec, holding a 52% ownership and serving as the lead developer and principal sponsor, will also provide EPC, O&M, and asset management services in conjunction with Orascom Construction. The project’s forthcoming phases include selecting an electrolyser supplier and finalizing project financing with support from global financial institutions such as the European Bank for Reconstruction and Development, the European Investment Bank, Germany’s DEG, British International Investment, and the US International Development Finance Corporation.
These developments are poised to strengthen Egypt’s position in the green energy sector, with the financial close anticipated in the first half of 2025.
