Scatec has entered into an agreement with ammonia producer Fertiglobe and The Sovereign Fund of Egypt (TSFE), to jointly develop a 50-100MW green hydrogen plant as feedstock for green ammonia production.
Scatec will build, operate and majority own the facility and a long-term offtake agreement will be entered into with Fertiglobe’s subsidiary EBIC.
The project will be realised in close cooperation with leading hydrogen technology providers and multilateral development institutions for financing.
Required engineering and development, including structuring of commercial agreements for the new facility, will start imminently with a target investment decision in 2022 and start-up of the hydrogen facility by 2024.
The facility will be located near EBIC in Ain Sokhna and is the first step towards developing a green hydrogen hub in Egypt.
This new partnership forms part of Scatec’s strategic initiative, “Power to X”, where it will develop long term partnerships to capitalise on its expertise in renewable project development in high growth markets globally.
Renewable technology, long term off-take contracts, equity co-investments and project financing from multilateral finance institutions represent key elements of this strategy.
The parties will seek support from the Egyptian government for required regulatory approvals and sourcing of competitive renewable power from the grid, with the intention to build out new solar and wind capacity to power Egypt’s green hydrogen ambitions in the years to come.