Scatec Partners with SCZONE, Sovereign Wealth Fund of Egypt, Ministry of Electricity and Renewable Energy to Develop Large-Scale Green Ammonia Facility in Egypt
Oslo, March 10, 2022: Scatec today signed a Memorandum of Understanding with the General Authority of the Suez Canal Economic Zone (SCZONE), the Sovereign Wealth Fund of Egypt (TSFE), the Egyptian Transmission Company of (EETC) and the New and Renewable Energy Authority (NREA), to jointly develop a green ammonia facility in Egypt with a production capacity of one million tonnes per year and with potential to expand to three million tons per year.
The green hydrogen and ammonia facility will be located in the Ain Sokhna Industrial Zone SCZONE and will be powered by renewable energy plants to be built nearby on land allocated by the NREA.
It is the first large-scale green ammonia production project in the country, which also includes the participation of the Egyptian government and demonstrates the country’s commitment to maximizing green and low-carbon energy production. . Egypt will host the United Nations Climate Change Conference, also known as COP27, in Sharm el-Sheikh later this year.
Raymond Carlsen, CEO of Scatec, said: “We are proud to once again partner with the Egyptian government represented by SCZONE and TSFE, as well as our long-standing partners EETC and NREA, for the realization of this exciting large-scale green ammonia project in Egypt. We believe that no effort should be spared to accelerate the energy transition, and we are excited to contribute to Egypt’s aspiration to become a green fuel hub.
Eng. Yehia Zaki, Chairman of the General Authority of the Suez Canal Economic Zone, said: “The SCZONE welcomes the opportunity to partner with the distinguished public and private entities joining forces for the development of this mega project, and we look forward to witnessing its execution over the coming months as a first step. towards the adoption of green ammonia technology and the creation of a green fuels industrial cluster in the SCZONE. We are ready to provide all the necessary support to accelerate the implementation of the project”.
Ayman Soliman, CEO of the Sovereign Wealth Fund of Egypt, said: “This partnership further reinforces the fund’s commitment to investing across the entire energy transition value chain in line with Egypt’s roadmap towards zero emissions goals. This project is a collaborative effort between the Ministry of Electricity and Renewable Energy, the Suez Canal Economic Zone and the Sovereign Wealth Fund of Egypt to provide an attractive investment opportunity for a global player like Scatec to develop a state-of-the-art green ammonia facility, capitalizing on Egypt’s natural resources and well-developed infrastructure. We are excited to play an active role in the green transformation towards a more sustainable future.
At a time when alternative energy is more important than ever, Scatec will leverage its expertise in renewable energy, project structuring and financing, and execution and operation to help establish an energy hub green and a green corridor in Egypt.
Once developed, Scatec intends to implement the project in phases based on Scatec’s integrated business model. Long-term offtake agreements will be entered into to allow non-recourse project financing for green ammonia. Green ammonia will mainly be exported to European and Asian markets, where the demand for clean ammonia is growing rapidly.
For more information, please contact:
Andreas Austrell, VP IR
Tel: +47 974 38 686, [email protected]
About Scatec ASA
Scatec is a leading producer of renewable energy, providing affordable and clean energy around the world. As a long-term player, Scatec develops, builds, owns and operates solar, wind and hydropower plants and storage solutions. Scatec has over 3.5 GW in operation and under construction on four continents and over 600 employees. The company is targeting 15 GW of capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway, and is listed on the Oslo Stock Exchange under the symbol “SCATC”. To learn more, visit www.scatec.com or connect with us on Linkedin.