Scatec, partners attract off-taker for green ammonia project in Egypt

An Egypt-based partnership of Norwegian renewable power producer Scatec ASA (OSL:SCATC) has signed a pact to sell locally produced green ammonia to Yara Clean Ammonia, a unit of Norwegian fertiliser company Yara International ASA (OSE:YAR).

The deal with Yara comes to support the partnership among Scatec, Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO) signed in 2023 for a renewable ammonia production facility in Egypt.

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The three partners have agreed to develop and build up to 480 MW of renewable power capacity and an up to 240-MW electrolyser facility for the production of green hydrogen. The output will be used to produce up to 150,000 tonnes of renewable ammonia annually at MOPCO’s existing facility in the port city of Damietta.

The project, which will require an initial investment of about USD 890 million (EUR 831.3m), is seeking support from the European Investment Bank (EIB) through a long-term financing for which Scatec has already signed a letter of intent (LoI).

The Damietta project is being advanced through the recently-established entity Damietta Green Ammonia Company (DGA). The site, which targets commissioning in 2027, is still pending a final investment decision (FID).

The pact among Scatec, Yara, ECHEM and MOPCO was signed during the Egyptian-European Joint Investment Conference held in Cairo over the weekend.

(USD 1 = EUR 0.934)