Scatec unveils plans for more hydrogen-to-ammonia projects in Egypt

Norwegian renewable power producer Scatec ASA (OSL:SCATC) announced today that it has signed a memorandum of understanding (MoU) with Egypt’s Suez Canal Economic Zone (SCZone) to study development of a new green ammonia project and met with the Egyptian government to discuss its green hydrogen plans in the country.

Under the MoU, Scatec and SCZone would see if they could set up a large-scale facility to produce ammonia from green hydrogen, derived from renewables, for export purposes, the Norwegian company said.

“The SCZone welcomes the opportunity to host the project at its prominent industrial areas and vital seaport, as a significant, integrated project in one of the most substantial sectors capturing the world’s attention at the moment,” Yehia Zaki, Chairman of the General Authority for the SCZone, said of the plan.

In a meeting with Egypt’s president Abdel Fattah El-Sisi held yesterday, Scatec talked about its plans for large-scale seawater desalination, and ammonia and hydrogen production based on renewable energy sources, it said in today’s statement.

"It was a great honour to meet with HE President El-Sisi, where he shared the government’s ambition to develop Egypt into a renewable hub for the region. Power from solar and wind, green hydrogen, green ammonia and water desalination are all key components of this plan and Scatec is well positioned to take part in it,” the company added.

The talks and the MoU come about two months after Scatec announced a firm project to develop a green hydrogen production plant in Egypt with an electrolysis capacity of up to 100 MW.

Scatec partnered on this development with The Sovereign Fund of Egypt and Fertiglobe plc, a producer and exporter of nitrogen fertilisers.

US-based Plug Power Inc (NASDAQ:PLUG) has recently been selected to deliver a 100-MW PEM electrolyser for the future plant, which will produce hydrogen to convert it into green ammonia.

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