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Strategic Agreement for Renewable Ammonia in Egypt

Scatec, ECHEM, and MOPCO sign a major agreement with Yara Clean Ammonia for the production of renewable ammonia in Egypt.

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Production d'ammoniac renouvelable Égypte

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Scatec ASA, in partnership with Egyptian Petrochemicals Holding Company (ECHEM) and Misr Fertilizers Production Company (MOPCO), has signed an important agreement with Yara Clean Ammonia for the purchase of renewable ammonia in Egypt. This agreement provides for the development of 480 MW of renewable energy and a 240 MW electrolysis facility to produce 150,000 tonnes of renewable ammonia per year at MOPCO’s Damietta plant. Egypt is ideal for investors in the ammonia sector, as Petrofac did in 2022.

The project benefits from financial support from the European Investment Bank (EIB), underlining its commitment to financing renewable hydrogen projects in Egypt. This investment marks a significant step forward in the collaboration between Scatec, ECHEM and MOPCO.

Economic and industrial impact

Scatec CEO Terje Pilskog stressed the importance of this agreement, highlighting Scatec’s strategy of developing renewable hydrogen projects. Yara Clean Ammonia, as a leading player in the market, thus strengthens its renewable ammonia sourcing portfolio. This partnership should have a positive impact on local and international markets.

H.E. Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources, said the collaboration supports Egypt’s national low-carbon hydrogen strategy, ensuring secure investments and facilitating Egypt’s vision as a regional hydrogen hub.

Technological and Financial Development

Eng. Ibrahim Mekki, Chairman of ECHEM, emphasized the strategic importance of this project for industrial innovation in Egypt. The Damietta Green Ammonia Company (DGA) was created to oversee this ambitious project. This partnership will produce 150,000 tonnes of renewable ammonia for export, reinforcing MOPCO’s role in this sector.

EIB Vice-President Gelsomina Vigliotti emphasized the importance of this project in boosting the competitiveness of companies and opening up export opportunities for renewable hydrogen.

This collaborative project between Scatec, ECHEM, MOPCO, and Yara Clean Ammonia is essential to achieving Egypt’s economic and industrial objectives. By combining the resources and expertise of these companies, Egypt is positioning itself as a key player in the production of renewable ammonia.

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